FCA throws London Capital Group a lifeline, approves Sabet’s financing proposal

Ailing British electronic trading company London Capital Group (LCG) has today made an announcement, following LeapRate’s publication on June 17 2014, concerning the proposed financing to raise up to £17,500,000, through the issue of convertible loan notes to GLIO and Institutional Investors, LCG is pleased to announce that the relevant FCA Approvals have now been obtained in respect of, inter alia, Mr Charles-Henri Sabet and GLIO, which satisfies the remaining conditions relating to GLIO’s subscription of not less than £12.5 million and up to £15 million in principal amount of convertible loan notes in respect of the Financing.

Following a series of potential merger and acquisition interest from rival firms last year which resulted in all interested parties not proceeding, London Capital Group continued to tread a path of obscurity until Mr. Sabet demonstrated his interest in investing in the company.

The first approval granted by the FCA allows Mr Sabet to carry on the CF1 (Director) function in relation to LCG (this being on the basis of his proposed appointment as Executive Chairman of the Company).

The second approval relates to the approval of, inter alia, GLIO as a controller of LCG in accordance with section 178 of FSMA.

GLIO’s subscription will be required to be made following the determination of the conversion price of the GLIO CLNs (assuming that there is no outstanding event of default and LCG’s net assets are not less than £8.5 million) in accordance with the terms of the GLIO CLN. A further announcement will be made in due course following such determination.

A further announcement will also be made in due course with respect to the proposed subscription by certain institutional investors of the Institutional Investors Convertible Loan Notes.

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