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4d ago

Argentex Shares Plunge 90% as Trading Resumes Amid Liquidity Crisis

The London-based FX broker faces financial turmoil following U.S. tariff-induced currency swings, a discounted takeover deal, and leadership resignations.

Argentex logo is seen in this illustration taken, Bosnia and Herzegovina May 4, 2025. REUTERS/Dado Ruvic/Illustration/File photo

Overview

  • Argentex shares dropped nearly 90% after trading resumed on London’s AIM, following a suspension due to liquidity issues.
  • The firm agreed to a £3 million takeover by IFX Payments at 2.49p per share, alongside a £20 million revolving credit facility to stabilize operations.
  • The financial strain was triggered by rapid U.S. dollar devaluation after President Trump’s April 2 tariff announcements caused extreme FX market volatility.
  • Argentex's reliance on zero-zero lines and insufficient hedging left it unable to meet margin calls, exacerbating its liquidity crisis.
  • A leadership overhaul is underway, with the CEO, CFO, and several board members departing as the company navigates its financial and operational challenges.