Argentex Group PLC (AIM:AGFX) shares plunged 92% in morning trading after the company secured a high-interest emergency funding package from IFX Payments and announced the resignation of nearly half its board, including former CBI chief Lord Digby Jones.
The £20 million revolving credit facility, agreed with IFX as part of its proposed acquisition of Argentex, comes at a steep price.
The six-month facility carries a 15% annual interest rate and a 7.5% non-utilisation fee.
It sits alongside £10.5 million in bridge arrangements provided by IFX last month. The funds are intended to support liquidity needs, especially margin calls linked to volatile foreign exchange positions, and can only be drawn with IFX’s consent.
Trading in Argentex shares resumed on AIM at 7.30 am following a suspension since 22 April, when the company warned it required urgent financial support.
The funding news was accompanied by a wave of board departures. Non-executive directors Henry Beckwith, Rina Ladva, Jeff Parker and Lord Digby Jones all stepped down on 2 May.
Chief Financial Officer Guy Rudolph also resigned, though he will remain in post during a six-month notice period. Tim Rudman was formally appointed chief executive on 5 May.
The newly restructured board now includes Rudman, non-executive chairman Nigel Railton, senior independent director Jonathan Gray and independent director Tim Haldenby.
Further updates on the proposed acquisition by IFX and the company’s future strategy are expected in due course.
The stock tanked 39.22p to 3.44p.