Shares of one of the few London listed brokerages in the industry, London Capital Group Holdings (LON:LCG), have hit a new all time low of 7.38 pence per share in today’s trading session. This comes after the company officially unveiled its new plans for expanding into the retail trading sector and launched its redesigned website and trading platform.
The new platform solution is an extensive rewrite of source code based on the cTrader platform from Spotware, which stems from the acquisition made by London Capital Group Holdings (LON:LCG) of Cypriot software company Surecom from the parent company Spotware Systems Limited last September.
After an initial public offering in 2008, London Capital Group Holdings (LON:LCG) raised £15 million at a placing price of 82 pence per share. The company was valued at the time at £31.4 million. At today’s price, the value of the company is a little bit less than £6.9 million ($10 million).
Bold new plans in a competitive marketplace
With the unveiling of the new plans by London Capital Group Holdings (LON:LCG), the company is aiming to establish a foothold in the very competitive U.K. space, which apparently is worrying for the few remaining investors in LCG’s shares outside of the firm’s current management.
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Following the debt to equity acquisition made by Charles-Henri Sabet led GLIO Holdings in 2014, the existing London Capital Group Holdings (LON:LCG) shareholders have been diluted. After the announcement was made in June 2014, the company has taken about a year and a half before launching a redesigned website with a modern trading platform solution.
In the meantime the firm also signed a deal with another software company named Algoweb, which was founded by the current CEO of the company Charles-Henri Sabet.
After numerous talks with other platform providers, London Capital Group Holdings (LON:LCG) has stepped up its game in September with the purchase of Cypriot Surecom. Only four months after this latest acquisition, the company has launched its new rebranded website and the LCG Trader platform.
Confidence by investors that the firm will be able to turn its fortunes around has been dwindling in recent months as shares of the company lost 80 per cent since January 2015. Currently the company’s stock is trading just above a new all time low at 8.3 pence per share.