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LCG proposes £10.7m placing to continue Sabet's laboured restructuring

Tue, 21st Jun 2016 14:02

(ShareCast News) - London Capital Group has proposed a £10.7m equity fundraising, with chief executive Charles-Henri Sabet GLIO vehicle eyeing an 80% stake in the company to replace earlier loans to the spread betting provider.Sabet, the Swiss banker who first invested in LCG in 2014 and later that year became executive chairman, said in a letter to shareholders that the placing of 215.25m new shares at 5p each was the "only realistic route" to providing what he feels is a necessary increase in Tier 1 capital to support current activities and anticipated future growth.GLIO is subscribing for 195.6m of the new shares, which will see its stake in LCG jump from around 20% to more than 80% as the fundraising repays £8.2m of convertible loan notes (CLNs) owed to GLIO as the notes are convertible into stock at a price of 25p per LCG share."The company has considered raising additional equity from new investors, by way of a placing of new shares at a discount to the company's prevailing share price. The company has approached various potential new investors with regard to such investment," the statement said."However, as a consequence of the company's financial and share price performance... this has been without success."At the end of 2015, LCG's common equity tier 1 capital was £8.4m, after the financial restructure, this will be increased to £12.7m.Since the beginning of 2015, LCG's shares have collapsed from 42p to almost 5p, as prior profits swung into losses.Sabet claims his efforts to restructure have taken longer than expected, hampered by external factors such as the surprise Swiss National Bank exchange rate move in January last year.But many of the Swiss's hires have jumped ship in recent months, including head analyst Brenda Kelly, head of marketing Ollie Rosewell, together with heads of sales trading, compliance, legal and chief operating officer all departing in 2016, Digital Look understands.By mid-afternoon on Tuesday the shares were down 7.6% to 5.16p.
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2 May 2014 07:39

UK MORNING BRIEFING: Pfizer Ups Bid For AstraZeneca, Pitches Cameron

LONDON (Alliance News) - UK shares have opened flat to slightly higher Friday, as pharmaceuticals and banks continue  at the forefront.

Pfizer confirmed that it has made an increased offer for AstraZeneca PLC of GBP50 per share, in cash and Pfizer shares. Pfize

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1 Apr 2014 09:06

London Capital Group Reports Wider Loss In 2013 On Costs, Impairments

LONDON (Alliance News) - London Capital Group Holdings PLC Tuesday said pretax losses widened in its recent financial year, as it incurred goodwill impairment, legal fees, and the costs of restructuring and changing its IT platform. Pretax profit widened to GBP4.8 million in 2013, compared

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1 Apr 2014 07:46

UK MORNING BRIEFING: Rathbone Brothers Acquires, Places Shares

LONDON (Alliance News) - UK shares have opened mostly higher Tuesday, following through on a strong close in NY and dovish comments from the US Federal Reserve chair.

Rathbone Brothers has made waves early Tuesday, announcing two major acquisitions and a share placi

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22 Jan 2014 09:51

London Capital Group Swings To Profit Excluding Claims Hit

LONDON (Alliance News) - Online trading and spread betting company London Capital Group Holdings PLC Wednesday reported slightly higher revenues for the second half of 2013, and said it managed to swing to a pretax profit for the year as a whole excluding the payouts it is having to make for clai

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22 Jan 2014 08:22

UK MORNING BRIEFING: Shares Gain At Open; Sage, JD Wetherspoon Positive

LONDON (Alliance News) - Shares are broadly higher Wednesday ahead of UK employment data and a Bank of England policy statement at 0930 GMT.

Prior to the open FTSE 100 software developer Sage Group and FTSE 250 pub chain JD Wetherspoon both have pro

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15 Nov 2013 08:43

London Capital Group Finance Director Moynihan Steps Down, Whelton Appointed Interim

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15 Nov 2013 07:53

AIM IN BRIEF: Quindell And ValiRx Placings; Noricum Gold Positive Results

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6 Nov 2013 16:45

London Capital Group Settles Legal Proceedings

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13 Sep 2013 08:50

London Capital Group To Sell ProSpreads To Apostar Holdings For GBP1.5M

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10 Sep 2013 09:17

London Capital Group Loses Tradefair Spreads White Label Contract

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18 Jul 2013 11:29

London Capital Group CEO resigns

The Chief Executive of London Capital Group has resigned just six months into the job. The online spread betting company said Mark Slade, who only took the reins in February, was leaving for personal reasons. He has been replaced by Kevin Ashby who recently joined the company as Chief Commercial of

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18 Jul 2013 10:22

STOCKS NEWS EUROPE-UK small caps underperform blue-chips

The FTSE Small Caps Index is flat in mid-session trading, while the FTSE Aim All Share Index edges 0.1 percent higher. Both small-cap indexes underperform a 0.3 percent rise on the blue-chip FTSE 100, although they outperform a 0.1 percent fall on the mid-cap FTSE 250 index. Plant Imp

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11 Jul 2013 14:43

London Capital Group expects rise in half year profits

Financial services and online spread betting company, London Capital Group, expects half-year profits to rise as a result of improved market conditions. The group anticipates adjusted pre-tax profits of £3.1m for the six months to end of June, compared to £2.1m for the same period last year and a l

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9 May 2013 16:07

Melrose director increases stake after positive update

A round-up of the biggest director deals today so far Miles Templeman, Senior Non-Executive Director of Melrose Industries, the FTSE 100 industrial conglomerate, has added £152,400-worth of shares to his stake in the company one day after it reported revenue was one per cent ahead in the year-to-da

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2 May 2013 20:03

MOVES-Lazard, UBS, Aviva Investors, U.S. Bancorp, Carlyle, Manulife

May 2 (Reuters) - The following financial services industry appointments were announced on Thursday. To inform us of other job changes, email to moves@thomsonreuters.com. LAZARD LTD The financial advisory and asset management company said it hired former J.P. Morgan Chase & Co investm

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