Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK) shares jumped 19% after the group said it entered a non-binding term sheet for $40 million in financing.
The funds will be used to refresh its Quebec mining fleet, strengthen the balance sheet, and explore potential mergers and acquisitions.
The initial $15 million tranche will be followed by up to $25 million over 18 months. The loans carry an 8% interest rate and a 25% conversion premium.
The unnamed investor group, which includes up to three multinational institutions, will provide the funding and gain three board seats.
The deal requires shareholder approval and regulatory waivers. Argo granted investors a 20-day exclusivity period and agreed to a $150,000 break fee under certain conditions.
Chairman Matt Shaw said the financing will drive profitable growth and improve financial stability. While the agreement is not yet final, Argo is working with investors to complete due diligence and finalise terms. Further updates will follow as discussions progress.
The stock rose 0.7p to 4.32p.