22nd Dec 2008 07:00
DANIEL STEWART SECURITIES PLC
("Daniel Stewart", "the Company" or "the Group")
ISSUE OF EQUITY RE PLACING
Daniel Stewart (AIM: DAN.L), stockbroker and corporate finance adviser to smaller and medium-sized companies, is today pleased to announce that it has conditionally placed 25,000,000 new ordinary shares of 0.25 pence each ("Ordinary Shares") with investors at a price of 2 pence per Ordinary Share, raising £0.5m for the Company ("the Placing").
Earlier this month, a group of investors indicated an interest in taking an equity position in Daniel Stewart, which gives the Company the opportunity to raise cash for the business and strengthen its shareholder base, without excessive dilution. The Company and Directors welcomed their interest in investing in the Company and moreover believe it prudent to raise funds, in view of market conditions which are challenging and are likely to remain so for some time.
The Group, along with most other market participants, has seen a significant fall-off in transactional work; however it has an excellent base of retained corporate clients and, following the Placing, will have net cash balances of approximately £2m, which gives the Company confidence that it will be in a good position to benefit when normal market conditions return. In the meantime, the Group has reduced its recurring cost base by over 20 per cent. since the middle of the year.
Looking forward, the Group will continue to strengthen its existing presence in North America and, over time, will consider establishing a presence in other major financial centres. The Directors believe that this will significantly enhance the Group's distribution capability and improve access to capital for its clients.
Application will be made for the new Ordinary Shares to be admitted to trading on AIM ("Admission") and dealings are expected to commence on 15 January 2009, subject to shareholder approval being granted at a General Meeting of the Company which is being convened for 14 January 2009. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares.
A circular is being posted to shareholders today convening the General Meeting, a copy of which will be available on the Company's website at www.danielstewart.co.uk.
Following admission, Daniel Stewart's issued share capital will comprise 260,311,066 Ordinary Shares of 0.25 pence each.
Further enquiries:
Peter Shea, Chief Executive Officer
Daniel Stewart Securities plc Tel: 020 7776 6550
William Vandyk
Blue Oar Securities plc (NOMAD) Tel: 020 7448 4400
Related Shares:
Daniel Stewart Securities Plc