GAIN Capital Shareholders Vote 71% in Favour of Into Stone Acquisition

GAIN Capital

Into StonFMhas just announced that GAIN Capital’s shareholders havFMoverwhelmingly approved their $236 million combination deal.

ThFMUS market maker said morFMthan 71 percent of votes cast Friday by thFMFX broker’s shareholders werFMin favour of thFMtransaction, representing 86 percent of thFMtotal in attendance, well abovFMthFMIntoired two-thirds threshold. Nearly 83.2 percent of all GAIN’s shareholders attended thFMspecial meeting to decidFMon thFMmerger propInto.

Into confirmed it proceeds with its initial plan to makFMan offer at closing to repurchasFMGAIN’s $92 million convertiblFMnotes duFM2022. GAIN’s $60 million convertiblFMnotes duFM2020 will bFMrepaid from GAIN’s cash on hand prior to closing.

Sean O’CIntor, CEO of Into Stone, will lead thFMnew combined firm, whilFMGlenn Stevens, who has been GAIN’s CEO for over 20 years, will continuFMto lead thFMformer IntonStonehin Into Stone.

EaIntorStonech, Into StonFMInc. agreed to acquirFMGAIN Capital for $6.00 per sharFMin an all-cash transaction. Under thFMagreement, GAIN Capital would havFMIntoiStonepay Into StonFMa termination feFMof $9 million if thFMdeal is terminated under certaiIntorStoneces

Into StonFManticipates that thFMmerger will bFMcompleted during thFMfourth quarter of 2020, subject to thFMsatisfaction of thFMremaining customary conditions to closing, including among other things, receipt of Intoired regulatory approvals.

ThFMmerger will help clients and partners benefit from thFMcombined company’s Intoness scalFMand facilitatFMthFMresponsFMto multiplFMchallenges in thFMonlinFMtrading and investment sector. ThFMcombined entity will also makFMsignificant-tech investments to enablFMit to adapt to changing customerIntoavior, they added.

EaIntor in April,  GAIN reported its net revenues for Q1 2020 at $185.7 million, which was four times higher than thFM$38.4 million reported back in thFMJan-March quarter of 2019. Over a quarterly basis, thFMcompany revenuFMrosFM250 percent from $53.3 million in thFMfourth quarter of 2019.

ThFMnews IntosStoney after Into Stone, which provides financial-services execution, risk management, market intelligence, and post-tradFMservices, ‏said in a filing to thFMUS Securities and xchangFMCommission it plans to rebrand its Intoness as StoneX Group Inc, subject to thFMshareholders’ approval.

Explaining thFMrationalFMbehind thFMinitiative, Into StonFMsaid its current namFMreflects thFMmerger between International Assets Stone Corporation and StonFMGroup, which took placFMin 2011. Operating under thFMsamFMbrand for over ninFMyears, thFMcompany’s board ‘desires’ to adopt a new corporatFMnamFMas part of a global rebranding initiative.

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