Breaking: LCG Top Shareholders Preparing to Delist the Company from LSE

The majority shareholder of London Capital Group, GLIO Holdings, is proposing a delisting of the company from the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term. The news comes after multi-year declines in the broker’s value.

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The company has been actively pursuing a restructuring since Charles Henri Sabet brought in a convertible loan investment from GLIO Holdings in 2014. After an initial investment of £17.5 million, the investor swapped its debt for equity and ended up with a controlling stake.

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The announcement made by LCG via the London Stock Exchange’s Regulatory News Service (RNS) network outlines that, following discussions with representatives of GLIO Holdings, the firm decided to seek shareholder approval for the delisting of the brokerage from the LSE AIM market.

Cost Reduction and Listing on NEX Growth Market

The rationale behind the move is cost reduction. Apparently, according to the board, the benefits of being listed on the LSE’s AIM market are not outweighing the costs of maintaining trading in the company's ordinary shares on AIM. The limited Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term in the shares of LCG is cited as an additional concern.

The admission of LCG to the NEX Growth Market laid the groundwork for the delisting of the firm from the LSE.

“GLIO Holdings have concluded that NEX would be a more appropriate market for the Company's shares to be traded on,” the official statement outlines.

In the coming weeks, a general meeting notice will be sent to the shareholders of the company. One of the resolutions that are being proposed for a vote includes the cancellation of trading in the LCG’s ordinary shares on AIM. The vote requires a 75 percent majority. Currently, GLIO Holdings owns 78.14 percent of the company's issued share capital.

Since GLIO Holdings is proposing the delisting, the delisting of the firm from the LSE’s AIM market is a virtual certainty.