Argo Corporation Announces Proposed Financing Arrangements

Executive Summary

• Argo Corporation announced a non‑brokered private placement of up to 21,250,000 common shares at $0.40 per share, targeting up to $8.5 million in gross proceeds.
• The company also entered into a non‑binding LOI for a $1.5 million secured loan with North American Bond Company, Limited, bearing interest at 12% per annum and maturing two years after closing.
• As part of the loan arrangement, up to 2,062,500 non‑transferable common share purchase warrants (exercise price $0.44) may be issued, expiring on the loan’s maturity date; both financing proceeds are earmarked for working capital and general corporate purposes.

Key Details

• Private Placement:
• Maximum offering size: 21,250,000 common shares.
• Price per share: $0.40.
• Potential gross proceeds: up to $8,500,000.
• No minimum subscription amount; the company may accept investors on a discretionary basis and may close the placement in one or more tranches.

• Shares subject to statutory hold period of four months and one day under Canadian securities law.

• Secured Loan (LOI):

• Principal amount: $1,500,000.
• Interest rate: 12% per annum.
• Maturity: two years from closing.
• Security: first‑ranking general security agreement over the company’s assets.

• Warrants: up to 2,062,500 non‑transferable common share purchase warrants, each exercisable for one common share at $0.44, expiring on loan maturity date.

• Use of Proceeds:

• Both financing streams are intended solely for working capital and general corporate purposes.

• Regulatory Conditions:

• Completion of the private placement is subject to TSX Venture Exchange acceptance of the terms and customary closing conditions.
• The loan remains contingent upon negotiation and execution of definitive documentation and TSXV approval.

Notable Quotes

• “These financing arrangements provide us with the capital needed to advance our next‑generation transit solutions and support ongoing operational initiatives,” – Praveen Arichandran, CEO, Argo Corporation.