FNG Exclusive… FNG has learned that ETX Capital has been branching out from its core business of Retail FX and CFD brokerage, acting as broker in a number of capital raising transactions involving small and mid cap companies.

That of course is not the only change afoot at London based ETX Capital, the operating brand name of FCA regulated Monecor (London) Limited. ETX is in process of being acquired by Switzerland based fintech investor Guru Capital SA, a deal we expect to close before the end of the year.

Is this a one (or two) time thing for ETX, or is investment banking going to be a mainstay for the company?

We spoke with ETX Capital CEO Philip Adler, here is what he had to say.

FNG: Hi Philip, and thanks for joining us today. We understand that ETX Capital has completed its first capital raising deal, helping raise £1.45 million for energy company Kibo. Is this a new business line for ETX?

Philip: You are correct in that we raised £1m of the Kibo £1.45m raise. However this was not our first raise. In fact we raised £1.3m for Alba Mineral Resources just last week. Our first capital raise was last December and the number of transactions has grown encouragingly since then.

This is a reasonably new business line for ETX Capital since September 2019. We are very active in all aspects of AIM activity including placings, advanced book builds and standard execution. We have strong relationships with several AIM listed corporates, investors and traders who focus on AIM.

FNG: How did the Kibo deal come together?

Philip: The Kibo deal came together as a result of due diligence carried out by our Capital Markets team who specialise in identifying these transactions and as previously mentioned are well connected with many AIM corporates

FNG: Are there other capital raising / investment banking transactions you’re already working on?

Philip: Yes, we are regularly identifying and reviewing opportunities. Due to the success thus far in this business segment, we are looking to expand the business to take advantage of more opportunities.

FNG: How have the past few months gone for ETX? You’ve had to manage both the Covid-19 crisis, and a change in ownership to Guru Capital (which we’d note is still in progress).

Philip: Like all businesses we had to contend with making sure that our staff can work effectively and comfortably from home to support business operations and our customers. I’m really proud to say that we managed this transition without skipping a beat.

As you mention, the change of ownership has not yet gone through. However, everyone at ETX is very excited at the prospect of Guru Capital taking the reins as soon as the regulator approves change of control.

FNG: Is the upcoming end to the Brexit transition period, and to EU-UK license passporting, something which is of concern to ETX?

Philip: ETX Capital already has regulated entities in the UK and Cyprus that can support our UK and EU clients at the end of the Brexit transition period.

FNG: What else can we expect to hear from ETX in the coming months?

Philip: Our main focus in the upcoming months will be transitioning the company to our new owner and launching new products and services that will be appealing to our customers.