Argo Blockchain PLC Announces Closing on Sale of Mirabel / TVR
Closing on Sale of Mirabel, Quebec Data CenterAllotment of New SharesShare Capital and Total Voting RightsLONDON, UK / ACCESSWIRE / March 28, 2024 / Argo Blockchain plc (LSE:ARB)(NASDAQ:ARBK), a global leader in cryptocurrency mining, is pleased to …
Closing on Sale of Mirabel, Quebec Data Center
Allotment of New Shares
Share Capital and Total Voting Rights
LONDON, UK / ACCESSWIRE / March 28, 2024 / Argo Blockchain plc (LSE:ARB)(NASDAQ:ARBK), a global leader in cryptocurrency mining, is pleased to announce that it has closed on the previously announced sale of its data center located in Mirabel, Quebec (the "Mirabel Facility") for total consideration of $6.1 million (the "Transaction").
The net proceeds from the Transaction were used to first repay the Mirabel Facility's outstanding mortgage of $1.4 million, with the remainder used to repay debt owed to Galaxy Digital Holdings, Ltd. ("Galaxy") (TSX:GLXY). As of 28 March 2024, reflecting the payment made to Galaxy from the proceeds of the Transaction and inclusive of the ordinary course monthly amortisation payment for March, the Galaxy debt balance is $12.8 million. This is a 63% reduction from the original Galaxy debt balance of $35.0 million.
Unaudited Debt Balances:
$ in millions
|
Interest Rate | 9/30/2023 | 12/31/2023 | Q1'24 Debt Reduction | 3/28/2024 | |||||||||||||||
Senior Notes
|
8.75 | % | $ | 40.0 | $ | 40.0 | - | $ | 40.0 | |||||||||||
Galaxy Debt
|
SOFR + 11 | % | 27.2 | 23.5 | (10.7 | ) | 12.8 | |||||||||||||
Mirabel Mortgage
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Prime + 0.5 | % | 1.6 | 1.5 | (1.5 | ) | - | |||||||||||||
Baie Comeau Mortgage
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Prime + 0.5 | % | 1.5 | 1.4 | (0.2 | ) | 1.2 | |||||||||||||
Total
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$ | 70.3 | $ | 66.4 | $ | (12.4 | ) | $ | 54.0 |
Importantly, the Transaction enables the Company to delever the balance sheet with minimal impact to the Company's revenue. The Company has completed the relocation and deployment of mining machines from the Mirabel Facility to its facility in Baie Comeau, Quebec, and the Company expects this consolidation to reduce its non-mining operating expenses by $0.7 million per year.