TORONTO, Dec. 22, 2025 (GLOBE NEWSWIRE) -- Argo Corporation (TSXV: ARGH), (OTCQX: ARGHF) ("Argo" or the "Company"), a leader in next-generation transit solutions, announced its intention to issue and sell up to 21,250,000 common shares ("Common Shares") of the Company at a price of $0.40 per Common Share, for proceeds of up to $8,500,000 pursuant to a non-brokered private placement (the "Offering") and its intention to enter into a $1,500,000 secured loan (the “Loan”) pursuant to a non-binding letter of intent (the “LOI”).
The Company intends for the Offering to be limited to key strategic investor groups and partners, however, the Company retains the discretion to accept subscriptions from any investor who qualifies under applicable securities laws. There is no minimum offering amount applicable to the Offering and the Company may not complete the Offering in full at its discretion. The Offering is not expected to materially affect control of the Company. Proceeds of the Offering will be used for working capital and general corporate purposes. Closing of the Offering is subject to acceptance by the TSX Venture Exchange (the "TSXV") of the terms of the Offering and other customary closing conditions. The Company may close the Offering in one or more tranches at its discretion. The Common Shares issued pursuant to the Offering are subject to a statutory hold period of four months and one day from the applicable date of issuance, in accordance with applicable Canadian securities laws. There can be no assurances that the Offering will be completed on the terms set out herein, or at all.
The Company entered into the non-binding LOI with North American Bond Company, Limited (the “Lender”) in respect of the proposed $1,500,000 Loan, expected to bear interest at 12% per annum and mature two years from closing. The Loan is expected to be secured by a first-ranking general security agreement. Completion of the Loan remains subject to the negotiation and execution of definitive documentation and acceptance of the TSXV. In connection with the Loan, the non-binding letter of intent contemplates that the Company would issue to the Lender, subject to TSXV acceptance, up to 2,062,500 non-transferable common share purchase warrants, each exercisable to acquire one Common Share at an exercise price of $0.44, expiring on the Loan maturity date. Proceeds of the Loan are intended to be used for working capital and general corporate purposes.
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, CEO
Argo Corporation
(800) 575-7051
Forward-Looking Information
This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate," "estimate," and "intend," and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. The forward-looking information set out in this news release relates to future events or future performance and includes, without limitation, statements concerning the size, timing, and completion of the Offering, the Loan, or of any other proposed future financing arrangements, use of associated proceeds, and other related information. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, as described in more detail in the Company's securities filings available at www.sedarplus.ca. Actual events or results may differ materially from those projected in the forward-looking statements, and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law. See "Cautionary Note Regarding Forward-Looking Information", ”Financial Risk Management Objectives And Policies” and “Other Business Risks and Uncertainties” in the Company’s Q3 2025 Financial Statements and its Q3 2025 MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks, and assumptions carefully when evaluating forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption.
Media Contact: Christina Ra, Argo Corporation, christina@rideargo.com, (800) 575-7051
