.jpg)
On April 22, 2025, Argentex Group PLC (AIM: AGFX), a London-based currency risk management firm, announced a suspension of trading in its shares due to significant liquidity pressures.
Following the publication of its FY24 Annual Results on 2 April 2025 and a subsequent investor roadshow, Argentex has faced heightened foreign exchange market volatility.
This volatility in currency markets has been particularly driven by the sharp depreciation and rapid devaluing of the US dollar against major global currencies, prompted by recent announcements from President Trump regarding new tariff policies and significant cuts to US government spending.
As a result, Argentex’s near-term liquidity position has come under considerable pressure, primarily due to margin calls on its FX forward and options book positions. In response, the currency firm has taken several actions to preserve cash and boost collateral from counterparties. It is also actively evaluating a range of strategic options to stabilise its financial position.
The London-headquartered currency risk management has the continued backing of its principal liquidity provider and is engaged in discussions aimed at further bolstering its financial liquidity position amid ongoing macroeconomic uncertainty. However, it warns that if currency market volatility worsens, its financial position could become severely stretched without immediate and effective intervention.
Given these developments and the current level of material uncertainty, Argentex has requested a suspension of trading in its ordinary shares on AIM, effective from 07:30 on 22/04/25.
Following AGFX's initial announcement detailing their company status and suspension of AIM-trading (and media speculation), Argentex Group PLC has confirmed that it has received several non-binding proposals for a potential acquisition of the business.
These proposals came from three parties: Lumon Acquisitions Limited (a vehicle of Pollen Street Capital), IFX Payments (trading as IFX UK Ltd), and a consortium made up of Terry Clune and Harry Adams.
After reviewing the offers, the Board of Argentex has decisively rejected the proposals from both Lumon and the Terry Clune/ Harry Adams consortium. However, it is now in advanced discussions with IFX Payments regarding a possible full acquisition of the company.
Under United Kingdom Takeover Code rules, all interested parties, including IFX Payments, have until 17:00 on 20 May 2025 to make a formal offer or announce that they do not intend to proceed.
At the same time, the currency risk management company continues to face severe liquidity challenges due to extreme volatility in foreign exchange markets. These pressures have rapidly deteriorated Argentex’s near-term financial position, prompting the need for an immediate cash injection to ensure ongoing solvency.
The Board is actively negotiating an initial bridging loan from IFX Payments to provide urgent working capital support, alongside discussions about longer-term funding.
The "Bridging Loan" is intended to provide Argentex with immediate working capital to help address its short-term liquidity challenges. However, the Board warns that there is no guarantee the loan will be finalised or made available. If an agreement cannot be reached, the Board will act swiftly to safeguard the value of the business for its creditors and other stakeholders.
As mentioned, all interested parties (including IFX Payments), have until 17:00 on 20 May 2025, to make a formal offer or announce that they do not intend to proceed.
Until a formal offer is made (by IFX Payments or other parties) and firm intentions are clear, Argentex is urging shareholders to take no action.
This latest announcement has triggered an official “offer period” under the City Code on Takeovers and Mergers, which brings added disclosure and transparency obligations for shareholders and market participants.
In light of the ongoing uncertainty, trading in Argentex’s shares will remain suspended until further notice.
With the company’s future now hinging on the successful outcome of talks with IFX Payments (both regarding a possible acquisition and the vital bridging loan). If those discussions fail, the Board has warned it may be forced to take immediate action to preserve value for creditors and stakeholders, which could include entering administration or similar restructuring proceedings.
For now, Argentex clients and shareholders should closely monitor company updates.
No decisions or changes are advised until further announcements are made, particularly regarding the progress of a definitive deal, acquisition talks, and liquidity support.
At Equals Money (EQLS) we offer solutions for international payments, spend management and more, catering to both business and retail customers in the financial services sector.
Our Equals Money platform provides a money management and payments layer, without the requirement to change from your existing bank. Core functionality includes expense management via virtual and physical cards, domestic, bulk, and international payments capabilities supported by Tier 1 bank connections.
Additionally, Because Equals Money accounts don’t fall under FSCS, with us your money is protected via safeguarding. We hold your funds in specially designated, safeguarded bank accounts, which keep them separate from our other assets.
Equals Money has a strong +18 year track record of continuous growth. Our products combines innovation with personalised service, providing security and connections to payment networks - all whilst retaining a strong compliance culture.
No, not at this stage. While Argentex is experiencing significant liquidity issues, it is actively working to secure a bridging loan from IFX Payments and is in advanced talks about a potential acquisition. However, the company has made it clear that if these efforts are unsuccessful and immediate funding is not secured, it may be forced to take urgent action to protect the business — which could include entering administration. For now, the company remains operational, and no formal insolvency proceedings have begun.
The suspension of trading means that investors cannot currently buy or sell Argentex shares on the AIM market. This action was taken to prevent market instability while the company negotiates both a potential acquisition and short-term funding to stabilise its financial position. The suspension will remain in place until further clarity is provided — either via a confirmed deal or a significant update on the company’s future. Shareholders are advised to monitor announcements closely and take no action until further notice.
If the bridging loan is not agreed and no alternative funding is found, Argentex’s liquidity position may become unsustainable. In this scenario, the Board has indicated it will take immediate steps to protect the value of the business for creditors and stakeholders. This could involve formal restructuring measures, including administration. The currency risk management provider is prioritising urgent funding talks to avoid this outcome, but the situation remains uncertain.
Argentex has been significantly affected by recent volatility in the currency markets, particularly the sharp decline of the US dollar against other major currencies. This market shift has triggered substantial margin calls on the company’s FX forward and options contracts, placing immediate pressure on its cash reserves. As a result, the company’s liquidity has deteriorated rapidly, prompting the need for emergency funding and strategic alternatives to stabilise the business. The Board has warned that continued currency market volatility in the FX currency markets could further strain Argentex’s financial position if not addressed promptly.
Argentex Group PLC is a UK-based foreign exchange rates and international transactions/ payments provider, serving business transactions, financial institutions, and high-net-worth individuals. Founded in 2012 and headquartered in Argyll Street, London, the British currency risk management firm offers tailored FX solutions including spot, forward, and options contracts, as well as multi-currency payment services. The company operates as a riskless principal broker, meaning it does not take market risk on client funds/ trades. Argentex is currently listed on the AIM market of the London Stock Exchange under the ticker AGFX and has transacted over $200 billion in client volume since its inception.
Sources used in this article:
This publication is intended for general information purposes only and should not be construed as financial, legal, tax, or other professional advice from Equals Money PLC or its subsidiaries and affiliates.
It is recommended to seek advice from a financial advisor, expert, or other professional. We do not make any representations, warranties, or guarantees, whether expressed or implied, regarding the accuracy, or completeness of the content in the publication.
Sign up to our daily market reports to get the latest news and insights on worldwide currency movements straight to your inbox every morning.
Enter your email address below to subscribe.
