FXCM Inc Board Officially Approves Reverse Stock Split
A prospective delisting from the New York Stock exchange has prompted the company’s board to propose a reverse stock split in July
According to a filing with the Securities and Exchange Commission (SEC), FXCM Inc (NYSE:FXCM) shareholders have upheld the decision of the company’s board to enact a reverse stock split of the company’s shares.
The board of FXCM Inc (NYSE:FXCM) proposed the move for shareholder approval back in July, when the company’s stock value was hovering around $1.30 per share. Facing the prospect of delisting form the New York Stock exchange, the stockholders have approved the proposal by a huge margin at a meeting this Monday.
With 82,347,638 shares of common stock entitled to vote on the reverse stock split decision, a total of 62,189,676 shares were present in person or by proxy, at the shareholder meeting. An overwhelming majority of 93 per cent has voted for the approval of the board’s proposal with 7 per cent voting against and a marginal number of shareholders below one per cent abstaining from the vote.
According to rules of the NYSE, a company is facing delisting only if its share price trades below $1.00 for 30 consecutive trading days. The first time when the FXCM Inc stock traded below a dollar per share was in the beginning of August, with the price rising back above the threshold in the beginning of this month.
Currently shares of the company are hovering just above $0.80 per share after falling over 50 per cent since the end of June.