NEW YORK, July 21, 2015 (GLOBE NEWSWIRE) -- FXCM Inc. (NYSE:FXCM), a leading online provider of foreign exchange (FX) trading and related services, today announced that its Board of Directors has approved a 1-for-10 reverse stock split of its issued and outstanding Class A common stock. FXCM anticipates holding a special meeting of stockholders on September 21, 2015 to seek the approval of stockholders to amend FXCM's Certificate of Incorporation to effect the reverse stock split and authorized FXCM's Board of Directors to determine the effective date of the reverse stock split.
"The execution of this reverse split represents an important step in achieving several significant corporate objectives, including FXCM's continued listing on the New York Stock Exchange," said Drew Niv, Chief Executive Officer and Chairman of the Board. "Remaining a NYSE-listed company is an important objective for FXCM. The NYSE requires certain standards be met to continue as a listed company on its exchange, and while we currently satisfy all of those obligations and do not anticipate that changing, a reverse stock split will only serve to help strengthen our status and protect the company and its shareholders."
At the effective time of the reverse stock split, every ten shares of issued and outstanding Class A common stock will be converted into one newly issued share of Class A common stock. Any stockholders entitled to fractional shares as a result of the reverse stock split will receive cash in lieu of such fractional shares. A new CUSIP would be assigned to FXCM's Class A common stock if the reverse stock split became effective.
Additional information about the reverse stock split can be found in FXCM's preliminary proxy statement filed with the Securities and Exchange Commission on July 21, 2015 a copy of which is available at www.sec.gov or at ir.fxcm.com under the SEC Filings tab located on the Investors page.
Disclosure Regarding Forward-Looking Statements
Certain statements contained herein may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and/or the Private Securities Litigation Reform Act of 1995, which reflect FXCM's current views with respect to, among other things, its operations and financial performance in the future. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about FXCM's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, risks associated with the events that took place in the currency markets on January 15, 2015 and their impact on FXCM's capital structure, risks associated with FXCM's ability to recover all or a portion of any capital losses, risks relating to the ability of FXCM to satisfy the terms and conditions of or make payments pursuant to the terms of the credit agreement with Leucadia, risks related to FXCM's dependence on FX market makers, market conditions, and those other risks described under "Risk Factors" in FXCM Inc.'s Annual Report on Form 10-K and other reports or documents FXCM files with, or furnishes to, the SEC from time to time, which are accessible on the SEC website at sec.gov. This information should also be read in conjunction with FXCM's Consolidated Financial Statements and the Notes thereto contained in FXCM's Annual Report on Form 10-K, and in other reports or documents the FXCM files with, or furnishes to, the SEC from time to time, which are accessible on the SEC website at sec.gov.
About FXCM Inc.
FXCM Inc. (NYSE:FXCM) is a leading provider of online foreign exchange (forex) trading, CFD trading, spread betting and related services. Our mission is to provide global traders with access to the world's largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market.
Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
Trading foreign exchange and CFDs on margin carries a high level of risk, which may result in losses that could exceed your deposits, therefore may not be suitable for all investors. Read full disclaimer.