Business
Update re. Argo Blockchain's strategic partnership
Update re. Argo Blockchain's strategic partnership.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \nRNS Number : 8479Y Vela Technologies PLC 13 May 2019 \n\n13 May 2019\nVela Technologies plc\n(\"Vela\")\nUpdate re. Argo Blockchain strategic partnership with HIVE Blockchain\nThe Board of Vela (AIM: VELA) notes today's announcement by Argo Blockchain PLC (\"Argo Blockchain\") regarding its strategic partnership with HIVE Blockchain Technologies Ltd (\"HIVE\"), and the associated conditional share swap agreement by which Argo Blockchain will receive 16,321,281 HIVE common shares, representing 5% of the existing outstanding share capital in HIVE in exchange for 44,062,500 ordinary shares in Argo Blockchain, representing 15% of Argo Blockchain's existing issued share capital. The transaction values Argo Blockchain shares at 11.6 pence per share.\nAt the date of this announcement, Vela holds 3,000,000 shares in Argo Blockchain representing approximately 1.02 per cent. of Argo Blockchain's current issued share capital. \nAn extract from the Argo Blockchain announcement is copied below:\nArgo Blockchain PLC\n(\"Argo\" or \"The Company\") \nStrategic Partnership with HIVE Blockchain \n£5.1 million share swap values Argo at 11.6p per share \nArgo is pleased to announce that it has entered into conditional heads of terms with HIVE Blockchain Technologies Ltd (\"HIVE\") to create the world's largest purpose-built business-to-business mining service provider aimed at large-scale enterprise and institutional customers. \nThe new partnership, which follows three months of discussions, will enable miners to benefit from the combination of the two groups' existing mining capacity, including part of HIVE's 45MW and part of Argo's 10.5MW capacity. \nAs a foundation stone of their proposed strategic co-operation, HIVE and Argo have conditionally agreed to a share swap arrangement, by which Argo will receive 16,321,281 HIVE common shares, representing5% of the existing outstanding share capital in exchange for 44,062,500 ordinary shares in Argo, representing 15% of Argo's existing issued share capital. \nThe transaction values Argo shares at 11.6 pence per share, a 231% premium to Friday's closing Argo share price. \nThe transaction, which does not involve any cash payment by either side, is expecte...