After losing longtime investor Edison Partners which distributed its 13.5% GCAP position to its own LP investors earlier this month, retail forex broker Gain Capital Holdings Inc (NYSE:GCAP) has extended the board rights of its other major outside investor, venture capital firm VantagePoint Ventures.
VantagePoint owns nearly 22% of GAIN Capital’s shares, currently worth around $86 million.
The extended agreement grants VantagePoint the right to designate a nominee to serve on GAIN’s Board of Directors. This right had technically expired prior to the company’s 2014 Annual Meeting back in June. The current VantagePoint director on GAIN’s board is Managing Director Tom Bevilacqua. Bevilacqua knows a lot about the online trading business, having previously served as an Executive Vice President of E*TRADE Financial (NASDAQ:ETFC).
VantagePoint’s rights to nominate a director at GAIN stay in effect so long as VantagePoint continues to hold at least 5% of GAIN’s shares. This right has now been extended until after GAIN’s 2017 Annual Meeting.
The formal filing on the extension of VantagePoint’s rights can be seen here.