New hardware delivers faster-than-expected ROI

RNS Number : 3294K

Argo Blockchain PLC

28 August 2019

 

PRESS RELEASE

28 August 2019

Argo Blockchain PLC

('Argo' or 'the Company')

New mining hardware delivers faster-than-expected ROI

Grant of share options

PDMR Dealing Notification & TR-1

Argo, a UK-based provider of enterprise scale cryptocurrency mining services (LSE: ARB), is pleased to announce that its strategy (as announced in April 2019) to make a major investment in new mining hardware has delivered better than expected returns to date.

The first phase of the investment programme commenced with the purchase of 1,000 Bitmain Z11 Antminer machines, which were ordered in April 2019 and went into production in early May 2019. The Company is pleased to report that these machines have achieved a 100% payback on their investment, thereby recouping their full cost in under half the time the Company had estimated.

Based on current mining margins, Argo is also well ahead of schedule to recoup the cost of the 2,267 S17 Antminer machines purchased in April and May of 2019 and which have been in production since May and June.

Mike Edwards, Executive Chairman of Argo, commented: "Our decision to move fast with a major expansion of mining infrastructure is reaping strong returns much earlier than expected.  I am confident this strategy will continue to pay off long-term."

Share Options

The Company has granted Matthew Shaw, who was appointed as an independent non-executive director on 17 July 2019, stock options over 1 million ordinary shares of £0.001 each in the Company (Ordinary Shares) at an exercise price of 16p per share. One third of Mr Shaw's options will vest after 12 months from the date of Mr Shaw's appointment and 1/36^th of the options will vest each month thereafter. These options will expire six years from the date of Mr Shaw's appointment.

In recognition of his efforts in establishment of the Company, the Company has agreed with Jonathan Bixby, a former director of the Company, to extend the exercise period for 5,953,691 options over Ordinary Shares granted to Mr Bixby in July 2018, and which have already vested, for a period of three years from 30 August 2019. Details of the options and the Company's option scheme are set out in the Company's prospectus dated 30 July 2018. The options remain exercisable at a price of 16 pence per Ordinary Share.

Share Transfer

The Company has received notification from Durban Holdings Ltd of a transfer of 19,350,000 Ordinary Shares from Durban Holdings Ltd to Toro Consulting Ltd, a company in which Jonathan Bixby is interested. The transfer of shares from Durban Holdings Ltd to Toro Consulting Ltd was completed at nil cost as both entities are entities in which Jonathan Bixby is interested.

Durban Holdings Ltd previously held shares on behalf of each of Mike Edwards, the Company's Chairman, and Jonathan Bixby, a former director of the Company. Following the transfer, Durban Holdings Ltd holds 21,600,000 Ordinary Shares on behalf of Mr Edwards, and no Ordinary Shares on behalf of Mr Bixby.

Following the transfer from Durban Holdings Ltd, the Company received notification from Toro Consulting Ltd that it had sold 10,540,000 Ordinary Shares to a third party.

Durban Holdings Ltd is a company jointly owned by Mike Edwards, the Company's Chairman, and Jonathan Bixby.  Consequently, Durban Holdings Ltd is a person closely associated with Mike Edwards, and therefore required to give a PDMR notification, details of which are set out below.

PDMR / Person closely associated	Ordinary Shares sold	Weighted average price per Ordinary Share	Resultant Shareholding	Percentage of the total voting rights of the Company
Durban Holdings Ltd	19,350,000	Nil	21,600,000	7.35%

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.

1.	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Durban Holdings Ltd
2.	Reason for the Notification
a)	Position/status	Person Closely Associated - Mike Edwards
b)	Initial notification / Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Argo Blockchain PLC
b)	LEI	213800WPCCYSDYY26J54
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the Financial instrument, type of instrument	Ordinary shares
	Identification Code	GB00BZ15CS02
b)	Nature of the transaction	Sale of shares
c)	Price(s) and volume(s)	Price(s) Volume(s) Nil pence per Ordinary Share 19,350,000 Ordinary Shares
d)	Aggregated information: ·     Aggregated volume ·     Price	19,350,000  Ordinary Shares Nil pence per Ordinary Share
e)	Date of the transaction	26 August 2019
f)	Place of the Transaction	London Stock Exchange

NOTIFICATION OF MAJOR HOLDINGS
1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:			Argo Blockchain PLC
1b. Please indicate if the issuer is a non-UK issuer  (please mark with an "X" if appropriate)
Non-UK issuer
2. Reason for the notification (please mark the appropriate box or boxes with an "X")
An acquisition or disposal of voting rights						X
An acquisition or disposal of financial instruments
An event changing the breakdown of voting rights
Other (please specify)iii:
3. Details of person subject to the notification obligationiv
Name			Durban Holdings Ltd.
City and country of registered office (if applicable)			Canada
4. Full name of shareholder(s) (if different from 3.)v
Name
City and country of registered office (if applicable)
5. Date on which the threshold was crossed or reachedvi:			26/08/2019
6. Date on which issuer notified (DD/MM/YYYY):			27/08/2019
7. Total positions of person(s) subject to the notification obligation
	% of voting rights attached to shares (total of 8. A)	% of voting rights through financial instruments (total of 8.B 1 + 8.B 2)		Total of both in % (8.A + 8.B)	Total number of voting rights of issuervii
Resulting situation on the date on which threshold was crossed or reached	21,600,000			7.35%	293,750,000
Position of previous notification (if applicable)	40,950,000			13.94%

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii
A: Voting rights attached to shares
Class/type of shares ISIN code (if possible)		Number of voting rightsix					% of voting rights
		Direct (Art 9 of Directive 2004/109/EC) (DTR5.1)		Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1)			Direct (Art 9 of Directive 2004/109/EC) (DTR5.1)		Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1)
Ordinary Shares GB00BZ15CS02		21,600,000					7.35%
SUBTOTAL 8. A		21,600,000					7.35%
B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))
Type of financial instrument		Expiration datex	Exercise/ Conversion Periodxi			Number of voting rights that may be acquired if the instrument is exercised/converted.			% of voting rights
			SUBTOTAL 8. B 1
B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))
Type of financial instrument	Expiration datex		Exercise/ Conversion Period xi		Physical or cash settlementxii			Number of voting rights	% of voting rights
					SUBTOTAL 8.B.2

9. Information in relation to the person subject to the notification obligation (please mark the applicable box with an "X")
Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii
Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv (please add additional rows as necessary)				X
Namexv	% of voting rights if it equals or is higher than the notifiable threshold	% of voting rights through financial instruments if it equals or is higher than the notifiable threshold	Total of both if it equals or is higher than the notifiable threshold
Mike Edwards	7.35%		7.35%
10. In case of proxy voting, please identify:
Name of the proxy holder
The number and % of voting rights held
The date until which the voting rights will be held
11. Additional informationxvi

Place of completion	LONDON
Date of completion	27/08/2019

NOTIFICATION OF MAJOR HOLDINGS
1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:			Argo Blockchain PLC
1b. Please indicate if the issuer is a non-UK issuer  (please mark with an "X" if appropriate)
Non-UK issuer
2. Reason for the notification (please mark the appropriate box or boxes with an "X")
An acquisition or disposal of voting rights						X
An acquisition or disposal of financial instruments
An event changing the breakdown of voting rights
Other (please specify)iii:
3. Details of person subject to the notification obligationiv
Name			Toro Consulting Ltd
City and country of registered office (if applicable)			Canada
4. Full name of shareholder(s) (if different from 3.)v
Name
City and country of registered office (if applicable)
5. Date on which the threshold was crossed or reachedvi:			26/08/2019
6. Date on which issuer notified (DD/MM/YYYY):			27/08 2019
7. Total positions of person(s) subject to the notification obligation
	% of voting rights attached to shares (total of 8. A)	% of voting rights through financial instruments (total of 8.B 1 + 8.B 2)		Total of both in % (8.A + 8.B)	Total number of voting rights of issuervii
Resulting situation on the date on which threshold was crossed or reached	19,350,000			6.59%	293,750,000
Position of previous notification (if applicable)	Nil			Nil

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii
A: Voting rights attached to shares
Class/type of shares ISIN code (if possible)		Number of voting rightsix					% of voting rights
		Direct (Art 9 of Directive 2004/109/EC) (DTR5.1)		Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1)			Direct (Art 9 of Directive 2004/109/EC) (DTR5.1)		Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1)
Ordinary Shares GB00BZ15CS02		19,350,000					6.59%
SUBTOTAL 8. A		19,350,000					6.59%
B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))
Type of financial instrument		Expiration datex	Exercise/ Conversion Periodxi			Number of voting rights that may be acquired if the instrument is exercised/converted.			% of voting rights
			SUBTOTAL 8. B 1
B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))
Type of financial instrument	Expiration datex		Exercise/ Conversion Period xi		Physical or cash settlementxii			Number of voting rights	% of voting rights
					SUBTOTAL 8.B.2

9. Information in relation to the person subject to the notification obligation (please mark the applicable box with an "X")
Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii
Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv (please add additional rows as necessary)				X
Namexv	% of voting rights if it equals or is higher than the notifiable threshold	% of voting rights through financial instruments if it equals or is higher than the notifiable threshold	Total of both if it equals or is higher than the notifiable threshold
Jonathan Bixby	6.59%		6.59%
10. In case of proxy voting, please identify:
Name of the proxy holder
The number and % of voting rights held
The date until which the voting rights will be held
11. Additional informationxvi

Place of completion	LONDON
Date of completion	27/08/2019

NOTIFICATION OF MAJOR HOLDINGS
1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:			Argo Blockchain PLC
1b. Please indicate if the issuer is a non-UK issuer  (please mark with an "X" if appropriate)
Non-UK issuer
2. Reason for the notification (please mark the appropriate box or boxes with an "X")
An acquisition or disposal of voting rights						X
An acquisition or disposal of financial instruments
An event changing the breakdown of voting rights
Other (please specify)iii:
3. Details of person subject to the notification obligationiv
Name			Toro Consulting Ltd
City and country of registered office (if applicable)			Canada
4. Full name of shareholder(s) (if different from 3.)v
Name
City and country of registered office (if applicable)
5. Date on which the threshold was crossed or reachedvi:			27/08/2019
6. Date on which issuer notified (DD/MM/YYYY):			27/08/2019
7. Total positions of person(s) subject to the notification obligation
	% of voting rights attached to shares (total of 8. A)	% of voting rights through financial instruments (total of 8.B 1 + 8.B 2)		Total of both in % (8.A + 8.B)	Total number of voting rights of issuervii
Resulting situation on the date on which threshold was crossed or reached	Below 3%			Below 3%	293,750,000
Position of previous notification (if applicable)	19,350,000			6.59%

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii
A: Voting rights attached to shares
Class/type of shares ISIN code (if possible)		Number of voting rightsix					% of voting rights
		Direct (Art 9 of Directive 2004/109/EC) (DTR5.1)		Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1)			Direct (Art 9 of Directive 2004/109/EC) (DTR5.1)		Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1)
Ordinary Shares GB00BZ15CS02
SUBTOTAL 8. A							Below 3%
B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))
Type of financial instrument		Expiration datex	Exercise/ Conversion Periodxi			Number of voting rights that may be acquired if the instrument is exercised/converted.			% of voting rights
			SUBTOTAL 8. B 1
B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))
Type of financial instrument	Expiration datex		Exercise/ Conversion Period xi		Physical or cash settlementxii			Number of voting rights	% of voting rights
					SUBTOTAL 8.B.2

9. Information in relation to the person subject to the notification obligation (please mark the applicable box with an "X")
Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii
Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv (please add additional rows as necessary)				X
Namexv	% of voting rights if it equals or is higher than the notifiable threshold	% of voting rights through financial instruments if it equals or is higher than the notifiable threshold	Total of both if it equals or is higher than the notifiable threshold
Jonathan Bixby
10. In case of proxy voting, please identify:
Name of the proxy holder
The number and % of voting rights held
The date until which the voting rights will be held
11. Additional informationxvi

Place of completion	LONDON
Date of completion	27/08/2019

NOTIFICATION OF MAJOR HOLDINGS
1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii:			Argo Blockchain PLC
1b. Please indicate if the issuer is a non-UK issuer  (please mark with an "X" if appropriate)
Non-UK issuer
2. Reason for the notification (please mark the appropriate box or boxes with an "X")
An acquisition or disposal of voting rights						X
An acquisition or disposal of financial instruments
An event changing the breakdown of voting rights
Other (please specify)iii:
3. Details of person subject to the notification obligationiv
Name			1219626 BC Ltd
City and country of registered office (if applicable)			Canada
4. Full name of shareholder(s) (if different from 3.)v
Name
City and country of registered office (if applicable)
5. Date on which the threshold was crossed or reachedvi:			27/08/2019
6. Date on which issuer notified (DD/MM/YYYY):			27/08/2019
7. Total positions of person(s) subject to the notification obligation
	% of voting rights attached to shares (total of 8. A)	% of voting rights through financial instruments (total of 8.B 1 + 8.B 2)		Total of both in % (8.A + 8.B)	Total number of voting rights of issuervii
Resulting situation on the date on which threshold was crossed or reached	10,540,000			3.59%	293,750,000
Position of previous notification (if applicable)	Nil			Nil

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii
A: Voting rights attached to shares
Class/type of shares ISIN code (if possible)		Number of voting rightsix					% of voting rights
		Direct (Art 9 of Directive 2004/109/EC) (DTR5.1)		Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1)			Direct (Art 9 of Directive 2004/109/EC) (DTR5.1)		Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1)
Ordinary Shares GB00BZ15CS02		10,540,000					3.59%
SUBTOTAL 8. A		10,540,000					3.59%
B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))
Type of financial instrument		Expiration datex	Exercise/ Conversion Periodxi			Number of voting rights that may be acquired if the instrument is exercised/converted.			% of voting rights
			SUBTOTAL 8. B 1
B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))
Type of financial instrument	Expiration datex		Exercise/ Conversion Period xi		Physical or cash settlementxii			Number of voting rights	% of voting rights
					SUBTOTAL 8.B.2

9. Information in relation to the person subject to the notification obligation (please mark the applicable box with an "X")
Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii
Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv (please add additional rows as necessary)				X
Namexv	% of voting rights if it equals or is higher than the notifiable threshold	% of voting rights through financial instruments if it equals or is higher than the notifiable threshold	Total of both if it equals or is higher than the notifiable threshold
Eric Chang	3.59%		3.59%
10. In case of proxy voting, please identify:
Name of the proxy holder
The number and % of voting rights held
The date until which the voting rights will be held
11. Additional informationxvi

Place of completion	LONDON
Date of completion	27/08/2019

For further information please contact:

Argo Blockchain
Mike Edwards President & Executive Director Neil Thapar Financial Communications Adviser	via Tancredi [phone] [phone]
Mirabaud
Corporate Broker Peter Krens	[phone]
Tancredi Intelligent Communication Media Relations
Salamander Davoudi [e-mail]  Emma Valgimigli [e-mail]	[phone] [phone]

About Argo:

Argo Blockchain plc is a global data centre business that provides a purpose-built and flexible platform for mining of leading cryptocurrencies for the enterprise-scale and institutional sectors worldwide from operational centres in Canada. The Company is headquartered in London, UK and its shares are listed on the Main Market of the London Stock Exchange under the ticker: ARB.

www.argomining.co

See Argo's largest facility in Quebec:

https://youtu.be/LDWWaZ75Zbk

 

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