One of the relatively new forex and CFDs trading technology providers, FDCTech is seeking public funding. The company has filed with the SEC an S-1 form, which details that the firm is looking to raise $450,000. The firm was founded by Mitch Eaglstein as Forex Development Corporation in 2016 before rebranding to its current name.
The document provides some details about the FDC’s operations last year after the firm was launched in 2016. The company reported $555,000 of revenues from a total of 10 clients as of the 31st of December of 2017. The firm has clients in the USA, the Bahamas, Bermuda, BVI, Cyprus, UK, Malta and the Dominican Republic.
The firm’s total assets as of December 31, 2017, amounted to just below $900,000. The company posted two consecutive losses in 2016 and 2017 totaling $640,000. The firm is aiming to spend the funds it raises for software development, sales and marketing and a boost to its working capital.
The existing shareholders of the company include several well-known industry execs. The biggest shareholder with almost 44 percent is the former Director of Fortress Capital Investments (and CEO of the infamous prime brokerage division Fortress Prime), Mitch Eaglstein. The company ceased to pay out withdrawal requests for months and caused losses to many firms in the industry. It was also closely associated with FBI fugitive Hamed Ahmed Elbarki.
The CFO of the company, Imran Firoz, joined FDCTech in 2016 from ABT Holdings, also known as Scoobeez. He holds 7.75 percent of the equity of the company.
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Felix Hong who is the principal shareholder of FRH Group which owns 41.34 percent of the shares of FDCTech
The CTO of FDCTech, Brian Platt, who also previously worked at Dubai-based Fortress Capital Investments, holds 0.73 percent. The same number of shares have been allocated to industry veteran Peg Reed. During her career, which was mostly on the institutional side of the FX market, she worked at multiple investment banks such as Barclays, Credit Agricole and Bank of America. Back in 2006, she became the head of sales of Citi’s subsidiary Lava Trading.
The Road Ahead
Commenting to Finance Magnates the CEO of FDCTech, Mitch Eaglstein, shared that the firm intends to become a fully reporting company. The details filed with the SEC will include audited annual financial statements, auditor reviewed quarterly financial reports and all material events for the firm.
“The process will provide transparency to our shareholders and the investment community. We intend to raise capital to further our software development, enhance our sales and marketing efforts, and for working capital purposes,” the CEO of the firm said.
Eaglstein also shared that the company currently has 12 corporate clients.
“As a financial technology company, we have not seen a negative impact on our business growth due to restrictions imposed on marketing and advertising for cryptocurrencies and affiliate sites for retail forex related activities by Big Tech,” says Eaglstein.