It appears Forex industry will never see IronFX and Nukkleus working together. IronFX Nukkleus Merger seems to be off the table, according to the latest Nukkleus US SEC filing. What do we kn0w?
IronFX Nukkleus Aquisition Plans
Both IronFX and FXDD are relatively large retail Forex broker. In fact, these two are initially rival to each other. A merger between the two firms could possibly be valued approximately $150M – $225M. On top of this, the combined companies would also open doors to many jurisdictions.
Considering that FXDD Global is regulated in Malta by the Malta Financial Services Authority (MFSA), while IronFX is based in Limassol, Cyprus and regulated by CySEC and has three other branches regulated by FCA UK, ASIC, and FSB.
In addition, last year, Nukkleus has announced that it decided to purchase the BVI-located entity GVS Limited. This entity is in control of Iron FX’s Australian office. Then, after the $1,000,000 transaction has been made, ASIC regulated GVS has been transferred to Nukkleus.
Following the changes, other amendments in the directory board have been made. As of the 1st of August 2016, the newly appointed Board of Directors of Nukkleus consisted of the following three IronFX affiliated executives:
– Markos Kashiouris, the Co-Founder and acting CEO of IronFX Global Group.
– Petros Economides, the Non-Executive Director and Co-Founder of IronFX.
– Efstathios Christophi, IronFX’s CFO since 2012.
In fact, at that time, Nukkleus IronFX acquisition was totally in sight. However, earlier this year IronFX has announced a major $100,000 investment from a Middle Eastern Family Office.
IronFX Nukkleus Merger Is Off the Table
However, the latest news reveals that two firms will not work together. The latest filing by Nukkleus with the US Regulator U.S. Securities and Exchange Commission states that firms have agreed to part ways. The document “Settlement agreement and mutual release” has revealed that companies agreed to cancel the transactions and agreements that were undertaken at the time.
Now, the official Nukkleus SEC filing states:
“The Company undertakes to cause Markos Kashiouris, Petros Economides and Efstathios Christophi to resign as directors of Nukkleus. The Company shall provide resignation letters duly signed by Markos Kashiouris, Petros Economides and Efstathios Christophi, in which they resign as directors of Nukkleus and waive any directorship fees payable to them under their letter of appointment dated August 1, 2016, on the execution date of this Agreement.”
Furthermore, all of the parties have agreed to the termination of the Sales And Purchase Agreement:
“Each Party agrees that if completion of clause 5.2 has occurred, the SPA is to be treated as terminated, that is the rights and obligations of each Party under the SPA are no longer legally enforceable.”
We have reached out to the companies’ officials in order to get more insights into the IronFX Nukkleus Merger cancellation case. We are currently awaiting their response.
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