Following the General Meeting of London Capital Group's (LCG) shareholders, the company has issued a statement, outlining that it has accepted the financing proposal by GLIO Holdings Ltd, headed by Charles-Henri Sabet. A number of convertible loan notes totalling between £12.5 million and £15.0 million will be issued alongside up to 75 million warrants, while the company will be looking at other institutional investors raising an additional £500,000 and £2.5 million in convertible loan notes and up to 12.5 million warrants.
The capital structure of the company will be changed once a full regulatory approval has been received.
LCG Holdings' Chairman, Giles Vardey, stated, "The company is looking forward to the active involvement of Charles-Henri Sabet and deploying these substantial resources to build out the Company's capabilities and product offerings. We now have the opportunity to strengthen our brand, develop a broader product and services offering, and attract a more diversified client base, both within the UK market and internationally."
The move happens only a day after a proposed all-cash deal was put on the table by Spreadex for 30p per LCG share. The deal was rejected by LCG’s board and no discussions have taken place. Shares of the company were trading above 30p before the announcement of the potential financing deal with GLIO Holdings.
Currently shares of the company are trading at 25.20 pence, or 3.08% lower, with activity muted during London trading.
