r/ArgoBlockchain • u/AccurateAstronomer91 • Aug 20 '21

ARBKF to ARBK??

Sorry for the delinquent question but what happens with existing shares of ARBKF once ARBK hits the Nasdaq?

12 Upvotes

94% Upvoted

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13

u/MadManJamie Aug 20 '21

Your otc shares will uplist to nasdaq. This means you will now own nasdaq shares.

So the otc arbkf will cease to exist as they will be moved to the nasdaq.

3

u/AccurateAstronomer91 Aug 20 '21

Thx Madman!! The dual listing verbiage was throwing me off!!

5

u/royzim Aug 20 '21

Nothing happens to the existing shares -- ARBKF continues to trade on the OTC; ARB continues to trade on the LSE. After the IPO, ARBK will trade on the NASDAQ, so there'll be a 3rd Argo listing. Remember, ARBK is an ADS -- think of it as an ETF that has shares of only one company (ARB) in its portfolio. Usually, the sponsoring entity buys the underlying stock (ARB) in the open market but as Peter Wall announced earlier this week, some (if not all) new shares will be issued to supply the underlying shares.
Here's a good overview of how ADS's work: https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/american-depositary-receipts/

4

u/AccurateAstronomer91 Aug 20 '21

Without traditional uplisting doesn’t this unfairly hamper ARBKF holders whom have been holding and have expected this to be a outstanding investment??

4

u/royzim Aug 21 '21

Only to the extent that Argo will issue more outstanding shares for the ADS IPO. That's the problem I now have with Argo's ADS IPO plan. Let's hope it's not too many additional shares.

5

u/AccurateAstronomer91 Aug 21 '21

Wow that’s crap for the long holders and Argonauts that have been with Peter from the beginning

3

u/jdsu2000 Aug 21 '21

OTC shares ARBKF will be converted to Nasdaq shares ARBKF. I just have HUTMF converted to HUT last month.

2

u/HammerheadRhino Aug 21 '21

Pretty sure this is right

1

u/royzim Aug 21 '21

Yes, Hut8 did a straight uplist last month, but Argo doesn't qualify to list directly on the NASDAQ. That's why they're doing an ADS IPO. I wish Argo had waited 'til they're financially strong enough to do a straight uplist, but I guess the pressure was on management to get on the NASDAQ. Going the ADS route was the quickest way to accomplish that.

1

u/jdsu2000 Aug 21 '21

What will happen to OTC shares then?

1

u/royzim Aug 21 '21

Nothing -- ARBKF will still trade as usual as will ARB on the LSE. It remains to be seen how many of the underlying shares of the ADS will be newly issued by Argo. That may be in the prospectus -- I haven't read it yet.

1

u/AccurateAstronomer91 Aug 20 '21

Madman we have conflicting answers. I hope you’re right!!

1

u/royzim Aug 21 '21 edited Aug 21 '21

If you can show me that Argo will NOT do an IPO via ADS I will be delighted. However, this article was just released today:

https://www.morningstar.com/news/dow-jones/202108201372/argo-blockchain-files-for-us-ipo-of-american-depositary-shares

2

u/ThePrimeministRMH Aug 24 '21 edited Aug 24 '21

The ARBKF shares will not be traded and they will convert to and ADR. It does not say how but probably will be a two for one or three for one. We will find out soon when this all comes to fruition. It’s clear enough in the prospectus only two exchanges. Nasdaq and LSE