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Gain Capital Holdings, owner of major forex brokerage brands like Forex.com, City Index, GTX, announced a Board of Directors decision to launch a stock repurchase program. Under it the company may repurchase up to $35 million of its outstanding common stock, nearly doubling the amount approved as of March 31, 2017.
Gain Capital may buy shares in the open market, in accordance with the applicable US securities laws and regulations. The scale of the repurchase will depend on a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by GAIN Capital’s management team. The program also may be suspended at any time. The buy-back will be financed with existing cash balances.
“Our Board of Directors and management team firmly believe in our long-term growth prospects and feel that our current share price does not accurately reflect the full value of the Company,” stated Glenn Stevens, CEO of GAIN Capital. “The additional authorized repurchase capacity demonstrates our confidence in the strength of the business and our commitment to efficient capital allocation and value creation for shareholders.”
Currently Gain Capital is the largest retail forex broker in the US, following the February exit of its main competitor FXCM and the purchase of its US client base.
Gain Capital was founded in 1999 and went public in 2010, on NYSE. The current market capitalization of the company stands at $274.64 million.
The company serves retail and institutional clients under the trading brands Forex.com, CityIndex, GTX, and Gain Capital. It is active in North America, Europe and the Asia Pacific regions. The broker offers trading in forex, commodities, and global equities. Its largest retail forex broker, Forex.com, also offers white label solutions for other forex brokers, operating throughout the world.
Earlier this week Gain Capital announced the launch of a new affiliate program. Also in May the company reported a Q1 2017 net loss, but said it remains optimistic.