Neustrada Supports JB Capital Proposal Regarding Gain Capital

RIVERSIDE, Conn., May 28, 2020 (Newswire.com) - Neustrada Capital LLC owns approximately 1% of Gain Capital Holdings, Inc and supports JB Capital’s proposal outlined in its Form 13D dated May 27, 2020.

Neustrada Capital noted in a letter sent to the Board on May 25, 2020 (attached) that it did not support the transaction for these reasons:

• The extraordinary earnings since the transaction was announced.
   
• The estimated net cash per share of $5.80 on May 31.
   
• The estimated tangible book value of $8.10 on May 31.
   
• The fact that the fairness opinion dated February 26 has not been updated.
   
• Three Directors support Neustrada’s view.
   
• The projected earnings power of $2.15 to $2.40 per share the company articulated in the attached presentation has been clearly substantiated.

Further, Neustrada noted that the Board’s own actions suggest the price is too low. Specifically:

• Repurchasing 8.2 million shares in 2018 at $7.73/share.
• Repurchasing 1.12 million shares in 2019 at $6.20/share.
• These purchases were made at approximately book value.  You are now recommending holders sell shares at an approximate 25% discount to book value.
• These purchases were made when the company had approximately $130 million debt outstanding versus a negligible amount at the projected closing date.
• The Board awarded Mr. Glenn Stephens incentive compensation for 2020, however, shareholders are not able to share in 2020’s earnings.

Contact: Gerald Catenacci gcatenacci@neustrada.com

Source: Neustrada Capital LLC