Agro Blockchain (ARBK) Omissions Case

E.D. New York

Court

23-CV-00572

Case number

On October 11, 2022, Argo Blockchain (ARBK) announced that “during the month of September, Argo mined 215 Bitcoin or Bitcoin Equivalents (together, BTC) compared to 235 BTC in August 2022.  The decrease in BTC mined is primarily due to a 12% increase in average network difficulty during September.  Additionally, the Company is continuing to curtail operations at its Helios facility in Dickens County, Texas during periods of high electricity prices.”

Argo's stock price dropped 10.9% following the release of the operational update. This decrease was likely due to the lower-than-expected mining numbers, which may have been seen as a negative indicator of the company's future performance.

The Company announced several strategic actions in an October 7, 2022 press release aimed at bringing in additional capital to the business and ensuring that the company has the working capital to execute its current strategy and meet its obligations over the next 12 months. The actions included reducing costs, preserving capital, amending existing equipment financing agreements, selling 3,400 mining machines for £6 million, and raising approximately £24 million via a proposed subscription with a strategic investor.

Despite these efforts to secure additional funding, the announcement caused Argo's ADS price to fall 23.26%. This decrease may have been due to market uncertainty or skepticism about the company's ability to successfully execute its announced plans and secure the necessary funding.

Argo conducted its initial public offering (IPO) on September 22, 2021. During the IPO, the company sold 7.5 million ADSs at a price of $15.00. This marked the company's debut on the public markets, allowing it to raise capital from a wider pool of investors.

Now, taking all representations and results into account, Investors have reasons to suspect that Company and its Leaders misled them in IPO registration documents.

Case Status

Attorney Investigation

Alleged Offence

Mismanagement,

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Negligence,

Omissions

Suspected Party

Directors,

Management,

Shareholder,

Influencer,

Investment Bank,

Service Provider,

Research Entity

Security Type

Stocks

Trade Direction

Long

Shock Event Date

10/10/2022

Filing date

01/26/2023

Judge

Hon. Nina R. Morrison

Agro Blockchain (ARBK) Omissions Case

Collecting participants…