17 Nov 2015 13:28
For immediate release: 17 November 2015
Daniel Stewart Securities plc
('Daniel Stewart' or 'the Company')
Issue of Convertible Bonds
Daniel Stewart, the investment bank offering corporate advisory, institutional stockbroking and wealth management services, is pleased to announce that it has raised £650,000 through the issue of two non-redeemable, convertible bonds (the "Bond") for working capital purposes and to strengthen the Company's balance sheet.
The unsecured Bonds are non-redeemable, non-refundable and convertible into Ordinary Shares of 0.25p each in Daniel Stewart (the "Shares") at a price of 1.5p per Share.
Epsilon Investments pte Limited ("EIL") has been issued with a Bond to the value of £350,000. In respect of the Bond, £349,000 has been received and upon payment of a further £1,000 the bondholder has the right to subscribe for 23,333,333 ordinary shares. In addition, EIL has been granted a warrant to subscribe for 10,000,000 new ordinary shares in Daniel Stewart at an exercise price of 1.5p at any time in the next three years. EIL currently holds 29.3% of the issued share capital of Daniel Stewart and conversion of the Bond and exercise of the warrant by EIL will be undertaken subject to the requirements of the FCA rules and all other applicable regulations.
Kilamanjiro Private Capital PTE Limited ("KPC") has been issued by the Company with a Bond to the value of £300,000, of which £299,000 has been received by the Company and which, upon payment of a further £1,000, the bondholder has the right to subscribe for 20,000,000 ordinary shares. In addition, KPC has been granted a warrant to subscribe for 8,751,428 new ordinary shares in Daniel Stewart at an exercise price of 1.5p at any time in the next three years
The Company continues to work on the finalisation of a placing to provide additional working capital for the Company, which it expects to announce shortly.
Related Party Transaction
Under the AIM Rules for Companies (the "AIM Rules"), EIL is a related party because it currently is interested in 29.9 per cent. of the Company's issued share capital and therefore the issue of the Bond to EIL is a related party transaction pursuant to Rule 13 of the AIM Rules. The directors of Daniel Stewart, consider that, having consulted with Beaumont Cornish Limited, the Company's Nominated Adviser, the terms of the Bond are fair and reasonable insofar as the shareholders of the Company are concerned.
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Enquiries:
DANIEL STEWART SECURITIES PLC
Peter Shea, Chairman
Tel: 020 7776 6550
BEAUMONT CORNISH LIMITED
Roland Cornish/ James Biddle
Tel: 020 7628 3396