Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK) shares plummeted 62% on Monday after the company unveiled a sweeping restructuring plan that will see existing shareholders’ equity cancelled.
The plan, aimed at avoiding insolvency, will hand control to US-based Growler Mining in exchange for emergency financing and asset contributions.
Growler has agreed to provide a $7.5 million secured loan and up to $30 million in crypto assets.
Bondholders, owed around $40 million, will receive new shares, while current shareholders will only be entitled to a nominal payment.
If approved by the High Court, Growler could end up with more than 80% of the company.
Argo said the restructuring is essential to avoid a liquidation scenario that would return far less to creditors and nothing to shareholders.
The company's London listing is likely to be cancelled, though it intends to retain its Nasdaq presence.
Chairman Matthew Shaw has stepped down and been replaced by Maria Perrella.
The stock tanked 1.78p to 1.10p.