TORONTO, Jan. 10,
2025 /CNW/ - Argo Corporation ("Argo" or
the "Company") (TSXV: ARGH) (OTCQX: ARGHF), a new venture
delivering the first-ever vertically and publicly integrated city
transit system, announced today updates to its previously disclosed
planned divestment of all or substantially all of the Company's
ownership interest in FoodsUp Inc. ("FoodsUp"), one of
Canada's leading restaurant supply
platforms (the "FoodsUp Divestment"), and Argo's
intention to extend the maturity date of its senior secured
convertible debentures (the "Debentures").
While Argo continues to maintain a majority non-controlling
ownership interest in FoodsUp, the Company has made progress in
resolving previously disclosed delays in the FoodsUp Divestment in
collaboration with FoodsUp management, and expects to announce
further plans with respect to its ownership of FoodsUp in Q1 2025.
Notwithstanding this progress, at the time the Company issued the
Debentures in February 2024, the
Company expected that it would, in the near term, be able to
complete the FoodsUp Divestment. In connection with this, the
Debentures include a condition that in order for the Debentures to
be settled through the issuance of units of the Company consisting
of one common share and one common share purchase warrant (each a
"Unit"), rather than settled in cash, the FoodsUp Divestment
must be completed prior to the conversion of the Debentures (the
"FoodsUp Condition"). Otherwise, the Debentures must be
settled in cash. Under the current terms of the Debentures, the
conversion or cash settlement must occur on or prior to current
maturity date of February 8, 2025.
Additionally, the interest rate of the Debentures is currently
scheduled to increase from 12% to 17.99% if the Debentures are not
settled on or prior to maturity on February
8, 2025.
In order to allow the Company to preserve cash, and to avoid the
Company having to repay the principal amount outstanding under the
debentures in the short-term or face an increase to the interest
rate on the Debentures, the debentureholders are agreeable to
allowing the Company more time to complete the FoodsUp Condition
while maintaining the interest rate applicable to the Debentures at
12%, rather than increasing it to 17.99%. The Company has
determined that this is in the best interest of shareholders and as
such, subject to receipt of approval from the TSX Venture Exchange
(the "TSXV"), the Debentures (along with the warrants which
are to form a part of the Units) will be amended to extend their
maturity date by one year, to February 8,
2026. All other terms of the Debentures and warrants,
including keeping the interest rate on the Debentures at 12%, the
conversion price of the Debentures, and the exercise price of the
warrants, remain unchanged. For additional detail on the existing
terms of the Debentures and warrants, see Argo's press release
dated February 8, 2024.
About Argo
Argo delivers the first-ever vertically and publicly integrated
city transit system, designed to augment public transportation and
create a network of intelligently routed vehicles that work
together to serve and scale to the needs of entire cities, putting
people in control of their mobility. You can learn more at
www.rideargo.com.
Praveen Arichandran, Co-CEO
Argo Corporation
(800) 575-7051
Forward-Looking Information
Certain information set out in this news release constitutes
forward-looking information within the meaning of applicable
securities laws. Forward-looking information is often, but not
always, identified by the use of words such as "seek",
"anticipate", "hope", "plan", "continue", "estimate", "expect",
"may", "will", "intend", "could", "might", "should", "scheduled",
"believe" and similar expressions. The forward- looking information
set out in this news release relates to future events or our future
performance and includes, without limitation statements concerning
the amendment to the Debentures and warrants and the terms thereof,
Argo's ability to obtain all necessary approvals in respect of the
amendment, Argo's intention with respect to the FoodsUp Condition
and the future actions of the debentureholders.
Although the forward-looking information contained in this news
release is based upon what management of Argo believes are
reasonable assumptions on the date of this news release, Argo
cannot assure readers that actual results will be consistent with
such forward-looking information. Forward-looking information
involves substantial known and unknown risks, uncertainties and
other factors which cause actual results to vary from those
expressed or implied by such forward looking information, including
without limitation those risks and uncertainties described in more
detail in Argo's securities filings available at www.sedarplus.ca.
Forward-looking information should not be read as a guarantee of
future performance or results, and will not necessarily be an
accurate indication of whether or not such results will be
achieved.
The forward-looking information contained in this news release
is provided as of the date hereof. Argo disclaims any intention or
obligation to update or publicly revise any forward–looking
information whether as a result of new information, future events
or otherwise, except as required under applicable securities laws.
All forward-looking information contained in this news release is
expressly qualified in its entirety by the foregoing cautionary
statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE ARGO CORPORATION
