FXCM just announced it filed a shelf registration statement allowing it to offer and sell, from time to time, up to $125 million of securities such as its Class A common stock, preferred stock, senior, subordinated or convertible debt securities, depositary shares, purchase contracts, warrants and units, or any combination thereof.
While the company doesn’t have any immediate plans to raise these funds or to spend them on anything specific it does allow FXCM to be very flexible when it wants to move fast. According to the CEO Drew Niv “The purpose of this shelf registration statement is to provide us with optimal flexibility to fund general corporate activities, which could include the financing of acquisitions and investments.”
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In December 2011 FXCM took $75 million credit facility – some of it may have been spent on the Lucid Markets acquisition and other deals. Some funds may be used to buy back its own stock. At the end of Q2 2012 FXCM had $214 million in cash and cash equivalents.
Drew Niv and other top forex industry CEOs will be discussing mergers and acquisitions at our upcoming Summit.