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Proposals for the future of the Company Introduction The board of directors of the Company (the "Board") is pleased to announce that it is in discussions relating to the future of the Company which, if brought to a satisfactory conclusion, would provide an attractive alternative to the current plan of liquidation and distribution as approved at the 2011 annual general meeting. The expected key features of the alternative plan (the "Proposals") include: -- the appointment of a substantially new board of directors and a new management team (together the "New Team") whose members would include individuals with long-standing and successful investment track records; -- a new strategic direction for the Company including the proposed development of an asset management business and investment portfolio; -- the issue of new ordinary shares in the Company ("Ordinary Shares") by way of a placing ("Placing") to new investors at a discount of 11.25 per cent. to the net asset value per Ordinary Share as at 30 June 2014 in order to raise approximately GBP20 million. Preliminary non-binding indications of interest in subscribing for a significant portion of this sum have already been expressed to the Company's advisers; -- the issue of warrants ("Warrants"), to be admitted to trading on AIM, to those holders of the Company's shares (the "Shareholders"), other than placees, on a one Warrant per five Ordinary Shares basis; -- the purchase of up to 850,000 supporter warrants (the "Supporter Warrants") by members of the New Team at a price of GBP0.075 per Supporter Warrant; -- the cancellation of the Company's listing on the Main Market and the admission of the share capital of the Company as enlarged by the Placing (the "Enlarged Share Capital") and the Warrants to trading on AIM ("Admission"); -- the reduction of the Company's share premium account by cancelling the share premium arising on the issue of the new Ordinary Shares; and -- the amendment of the Company's Investment Policy. It should be noted that discussions are at an early stage and there is no certainty that agreement as regards the implementation of the Proposals, or any part of the Proposals, will be reached. Furthermore, if progressed, implementation of the Proposals will be subject to, amongst other things, approval by the Shareholders (including of special resolutions requiring approval of 75% of votes cast on the relevant resolutions to be cast in favour). If any of the resolutions are not approved by Shareholders, none of the Proposals will proceed. The Board believes that, if implemented, the Proposals provide an attractive alternative to the current plan of liquidation and distribution which, as announced, will involve a significant amount of