Argo Blockchain (ARB) Investor Update summary

Overview of the restructuring plan and process

• A restructuring plan is proposed to address severe financial distress, with court approval required to bind all stakeholders, including dissenters.

• Plan meetings for shareholders, note holders, and the secured lender are scheduled for December 2, with a court sanction hearing on December 8.

• If the plan is not approved, insolvency and liquidation are likely, leaving shareholders and note holders with no value.

• The plan aims to restore financial stability by converting debt to equity and injecting $3.5 million in new funding from Growler.

• The plan's fairness and benefit allocation are supported by independent expert reports and will be scrutinized by the court.

Impact on stakeholders and share structure

• Growler will own 87.5% of the enlarged share capital, note holders 10%, and existing shareholders 2.5%.

• Shareholders retain voting and dividend rights but face significant dilution; note holders' bonds are fully equitized.

• ADS ratio will change to 1 ADS per 1,260 ordinary shares to meet Nasdaq listing requirements.

• Delisting from the London Stock Exchange is planned, with a six-month matched bargain facility for trading unlisted shares.

• Shareholders can convert ordinary shares to ADSs for Nasdaq trading.

Financial and operational context

• Argo's financial distress stems from prolonged low crypto prices, high energy costs, and a heavy debt burden.

• The Helios facility sale and subsequent loan from Galaxy provided short-term relief but did not resolve underlying issues.

• Extensive marketing for new investment yielded only Growler's proposal as viable.

• Energy costs will not be reduced by the transaction, but debt servicing obligations will decrease, freeing cash for operations.

• Mining capacity will increase from 1.4 to 2 exahash and from 15 MW to 30 MW.