Forex International Trading Corp. and its CEO, Darren Dunckel have been in the news a lot over the last two weeks. It appears that Dunckel is making another bold move.
LAS VEGAS -- Forex International Trading Corp. (OTCBB:FXIT), a company, through its affiliates, is principally engaged in offering a web-based foreign currency trading platform to non-US residents, professionals and retail clients, together with a third party today announced that it has entered into a Letter of Intent ("LOI") to acquire up to 40.1% equity interest in Nexus Capital Ltd., a U.K. regulated investment advisory firm specializing in contracts for difference (“CFD”), foreign exchange, spread trading and share dealing. In addition, the LOI provides that Lanatech Limited (an unrelated third party) may acquire up to 9.9% equity interest in Nexus.
In recent years, CFDs have grown in global appeal to retail investors as an investment vehicle that allows for the small investor to put less capital at risk to participate in movements in larger blocks of securities. Similar to its strategy in the Forex market, the Company is seeking global exposure (non-US residents) to the CFD market, where retail investors overseas are increasingly finding this an attractive method to invest.
“We are continuing to build our company through acquisitions that fit our growth strategy. Nexus gives us the ability to expand our opportunities outside of the U.S. as we look to establish a presence in the CFD markets overseas,” stated Darren Dunckel, CEO of Forex International Trading Corp. “We believe this acquisition could generate a great deal of interest in our state-of-the-art retail trading platform as we give our international clients the ability to trade forex and contracts for difference. We anticipate the due diligence process and review process by the Financial Services Authority to take approximately 45 to 60 days.”
Max Asmelash, Director of Nexus Capital stated, “As a company authorized by the Financial Services Authority (FSA) throughout the European Union, Nexus is a licensed and regulated firm and we have been seeking to partner with an organization like Forex International Trading to expand our business. Through this transaction we will have available to us a powerful web-based trading platform solution that will allow us to cross market both our CFD offering and our forex offering to an international retail client base. We look forward to working together in building a global power house online trading firm.”
The letter of intent for the most part is non-binding on the parties. The acquisition is subject to certain requirements including due diligence, approval from the FSA, execution of a mutually-acceptable definitive purchase agreement and various other customary conditions. Accordingly, no assurances can be made that the transaction will be consummated.