CEO Resigns After Galaxy Digital Acquires Argo
Argo was able to resume compliance with the Nasdaq minimum bid price rule thanks in part to the purchase.
The corporation allegedly concealed its vulnerability to capital limits, electricity costs, and network issues.
Since September 2020, Appleton has worked for the corporation in an executive capacity.
The CEO of cryptocurrency miner Argo Blockchain is the second executive to leave the business since Galaxy Digital purchased it.
Peter Wall, the CEO of Argo Blockchain, announced his resignation from his executive position on February 9th. Wall stated that he was "pleased" to have spearheaded the recent acquisition of Galaxy Digital, and will remain an adviser to Argo for the next three months to ensure a smooth transition.
In addition, Argo board member Sarah Gow also resigned due to health reasons. This news comes shortly after the company filed a lawsuit, further highlighting the series of changes Argo is currently undergoing.
Just one week before Argo's major company changes, the company suffered a major setback with the resignation of its Chief Financial Officer, Alex Appleton. According to a filing with the London Stock Exchange, Appleton resigned to "pursue other opportunities". This news came shortly after the finalization of the sale of the Helios facility to Galaxy Digital Holdings.
Appleton had been with the company since September 2020, and his departure marked the latest development in a series of changes for Argo. In late December 2022, the company reported insufficient funds and a lack of assurance that it could avoid filing for Chapter 11 bankruptcy.
In response, Argo sold its top Helios mining facility to the global crypto-focused financial services firm Galaxy Digital for $65 million, helping to reduce its total debt by $41 million. This acquisition was a major factor in helping Argo regain compliance with the Nasdaq minimum bid price rule, which requires the stock's minimum bid price to remain at $1 for 30 consecutive trading days.
Unfortunately, the company was hit with a lawsuit on January 26th, alleging that Argo and several of its executives and board members had failed to disclose key information to investors, such as the company's susceptibility to capital constraints, electricity costs, and network difficulties.
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