FXCM shareholder vote overwhelmingly passes resolution on 1:10 reverse share split – LeapRate Exclusive


LeapRate Exclusive… LeapRate has learned that the shareholder vote held today at FXCM Inc (NYSE:FXCM) on the issue of a 1:10 reverse share split of the company’s shares overwhelmingly passed the resolution in favor of a reverse split.

The reverse split is required to prevent FXCM’s shares from being delisted from the NYSE. NYSE rules require its listed companies to maintain a minimum $1.00 share price.

FXCM’s shares has been languishing in the 80-90 cent range for the past two months, now sitting at $0.85. And as expected, FXCM received a formal non-compliance notification letter from the NYSE on September 3, giving the company six months to somehow ‘get compliant’ – i.e. somehow get their share price above the $1.00 level.

Sources in attendance at the meeting, as well at sources at the company, have informed LeapRate that based on tabulation reports received following the meeting that the proposal has passed. However, FXCM is awaiting official results which will be formally disclosed with the SEC on a Form 8-K filing.

When the reverse split is indeed effected, each FXCM shareholder will receive 1 ‘New FXCM’ share in return for tendering 10 ‘Old FXCM’ shares. A shareholder currently holding 1,000 FXCM shares will receive instead 100 New FXCM shares.

And – if basic math holds – the New FXCM shares should therefore trade at about 10x the value of the current share price, or at about $8.50 – well above the NYSE’s $1.00 minimum.

We will continue to follow this story as the results are eventually made official. Stay tuned to LeapRate…

Related News

arrow

FXCM shareholder vote overwhelmingly passes resolution on 1:10 reverse share split - LeapRate Exclusive

17

Send this to a friend