Argo Blockchain shares surged 16% after the company signed a non-binding term sheet for up to $40 million in senior secured convertible loans. Argo Blockchain shares surged over 15% after securing a funding deal of up to $40 million in senior secured convertible loans. In a March 3 press release , the company revealed it had signed a non-binding term sheet on Feb. 25, with an initial $15 million tranche and up to $25 million more over 18 months. With the funding, Argo Blockchain wants to upgrade its Bitcoin mining fleet in Quebec, Canada, bolster its balance sheet, and explore mergers and acquisitions opportunities. You might also like: Argo Blockchain CEO resigns due to financial struggles The loans will have an 8% interest rate and a 25% conversion premium based on Argo Blockchain’s share price before signing. Investors will also receive warrants equal to 30% of the loan amount at a premium price, the press release reads. While it’s unclear who backed the funding, the crypto mining giant says the deal is backed by up to “three multinational institutional investors.” They will get three board seats once the agreement is finalized and approved by shareholders. “The Financing is expected to be funded by up to three multinational institutional investors and will include 30% warrant coverage, also at a premium to the closing price. The Investor Group will have three seats on the board upon completion of definitive documents and shareholder approval.” Argo Blockchain Commenting on the funding, Argo Blockchain chairman Matt Shaw says the deal will “allow profitable growth at Argo and strengthen our balance sheet.” Following the announcement, the company’s shares climbed 16% to $0.45 in pre-market trading, according to data from Yahoo Finance. Read more: Argo Blockchain interim CEO buys 75k shares in insider deal
