Argentex Resumes AIM Trading with New Credit Facility
LONDON (Reuters) -Argentex Group resumed trading on London's AIM on Tuesday after securing an initial six month 20 million pound ($26.57 million) revolving credit facility with IFX Payments, the UK currency risk manager said in a statement.
Argentex's shares had been suspended from trading since April 22 following sharp falls in the U.S. dollar that squeezed its finances. The stock plunged at the market open, and was trading 88% lower at 5.88 pence at 0755 GMT.
The company became one of the first known casualties of global financial market turmoil sparked by escalating trade tensions stemming from U.S. President Donald Trump's tariff policies.
On April 25, cross-border payments provider IFX Payments said it would pay 2.49 pence per Argentex share to acquire the embattled company, valuing the firm at about 3 million pounds. IFX has also provided Argentex with secured bridge funding of about 10.5 million pounds.
The revolving credit facility (RCF) enables Argentex to draw down funds to meet margin calls from its liquidity providers, in the event of further adverse foreign exchange movements, the company said.
The RCF has an interest rate of 15% per annum and a non-utilisation fee of 7.5% per annum, and may be extended to 12 months from the date of the RCF agreement.
The firm separately said that Chief Financial Officer Guy Rudolph had resigned from his role, but would serve a six month notice period.
Henry Beckwith, Digby Jones, Rina Ladva and Jeff Parker, all non-executive directors of the company, have also agreed to leave the Argentex board.
The board now consists of Nigel Railton as non-executive chairman, Jonathan Gray as senior independent non-executivedirector, Tim Haldenby as independent non-executive director and Tim Rudman as chief executive.
($1 = 0.7527 pounds)
(Reporting By Sinead Cruise; editing by Tom Wilson and Susan Fenton)
