London Capital Group Holdings plc (LON: LCG) just announced to its investors that it has issued 500,000 new ordinary shares in the company in part consideration for the purchase of a domain name from an undisclosed private individual.
The group did not disclose what domain it had bought but by checking the internet registry we found out that LCG.com was transferred to its control today. The group's website is already established at londoncapitalgroup.com, but considering all the incidents of corporate identity theft by clone websites targeting financial brokers it is easy to see why the group found it so important to bring the domain under its control.
The price for FX related domain names have been steadily increasing in recent years and short three letter long domains, such as LCG.com, are naturally among the most expensive. London Capital Group Holdings plc stock price opened for trading today at 22.75p bringing the issue of 500,000 shares to a total of £113,750. For a company the size of LCG this sum evidently seems reasonable to pay for a domain name. For purposes of comparison, last year an Israeli VC fund paid over $5 million for the Invest.com domain.
An application by LCG has been made for the new ordinary shares to be admitted to trading on the London Stock Exchange 's Alternative Investment Market (LSE AIM) where it is listed. It is expected that the admission will occur on July 29, 2015. Following the admission, the company will have 76,092,276 ordinary shares in issue, of which 1,000,000 are held in treasury. The total number of voting rights in the London Capital Group Holdings plc will therefore be 75,092,276.
