Shareholders of London Capital Group (LCG) have approved the company’s delisting from the London Stock Exchange (LSE) at the general meeting held earlier today.
The FX, CFDs and spread betting provider, which listed on London Stock Exchange’s Alternative Investment Market (AIM) in December 2005, announced last month that after talks with its largest shareholder GLIO Holdings, it has decided to seek shareholder approval to cancel trading of its shares on the 6th of February 2018.
The company explained that its decision to cancel the listing was a result of its recent admission to the NEX Growth Market, and as the time is right to reduce the complexity and expense of maintaining listing on AIM, as well as citing the limited liquidity of its shares as a major concern.
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The retail brokerage needed 75% of votes in favour to pass the cancellation. It largest shareholder, GLIO Holdings, which is led by Charles-Henri Sabet, has already announced that it will support the move at the company’s general meeting. GLIO holds a 78% interest in the company.
With its core services concentrated on the trading products targeted by the UK and Europe regulators’ recent clampdown, the last few months have been a grim period for the UK’s online retail broker. The ailing company was hit by unexpectedly low levels of market volatility and the threat of the FCA and ESMA tightening their grip on the industry.
LCG’s market cap now stands at below £4.0 million. Still, the company said last year that its revenues jumped to £23.2 million ($30.3 million) in 2016, up 50 percent from £15.5 million ($20.3 million) the year before.
In 2014, LCG was acquired by Charles-Henri Sabet who pumped a £17.5 million boost to finance the turnaround efforts that included a restructuring and rebranding process, and the launch of new platforms and technology.
According to the company’s circular: “The last day of dealings in the its ordinary shares will be 13 February 2018 and at 7.00 a.m. on 14 February 2018 the Company’s ordinary shares will be cancelled from trading on AIM. Following the Cancellation, the Company’s ordinary shares will remain admitted to trading on the NEX Exchange.”