29th Jan 2015 10:55
LONDON (Alliance News) - Daniel Stewart Securities PLC Thursday said it has raised GBP1.5 million of new funding in total, more than enough to shore up its balance sheet and resolve its regulatory capital shortfall, after bringing in a new Singapore-based investor.
The institutional stockbroker, wealth manager and corporate advisory got into difficulties after it identified a shortfall in regulatory capital, and its shares were suspended as it sought new funding to strengthen its balance sheet. It gave up its nominated adviser business in an attempt to cut costs and narrow its focus.
On Thursday, it said it had raised GBP0.4 million through a cash subscription for 111 million new shares, GBP0.8 million through a cash subscription for non-redeemable callable bonds, and GBP0.3 million through the acquisition and conversion of loan notes held by Chairman and Chief executive Peter Shea.
Epsilon Investments PTE Ltd, a company registered in Singapore and controlled by Zainab Binte Mohamed Omar, has emerged as a major new investor, subscribing for 70.5 million of the new shares and a GBP775,000 callable bond giving it the right to subscribe for 194 million new shares when it pays a further GBP1,000. Epsilon will exercise the bond as soon as it gets controller status from UK regulator the Financial Conduct Authority.
Epsilon will have a 9.99% stake in Daniel Stewart once after the share subscription, and then a 29.39% stake once the bond is converted.
Daniel Stewart expects to be able to publish its accounts for the year to March 31, 2014 in early February, and its shares will remain suspended until then.
By Steve McGrath; [email protected]; @stevemcgrath1
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