DSS Shareholders

Dear Shareholder,

Following on from the delisting of Daniel Stewart Securities (DSS) from AiM and In order to safeguard the business of its subsidiary, Daniel Stewart & Co, Daniel Stewart Securities had to arrange funding to re-establish the necessary regulatory capital.

Such regulatory capital is required to be provided in the form of permanent equity.

It was also apparent that, in order for the business of Daniel Stewart &  Co to continue after re-establishing it’s regulatory capital, it would need further funding to finance ongoing losses until stabilisation could be completed. Again such funding would be required to be in the form of permanent capital.

We have now received approval from the FCA for such funds as have been provided to be converted into equity of Daniel Stewart & Co. The resultant position is that Daniel Stewart Securities now owns approximately 10% of Daniel Stewart & Co.

The situation is such that Daniel Stewart Securities is effectively a cash shell and we will now begin the process of trying to establish some value for shareholders utilising the shell.

We believe that we should try to establish a public market for the trading of the shares at the earliest opportunity and as such we will examine the possibility of listing Daniel Stewart Securities on the Standard section of the full list as a cash shell. Should we achieve this we will then seek a suitable business to reverse into it.

You should all be aware that a listing on the LSE has a cost and a minimum cash available requirement. At present Daniel Stewart Securities does not have sufficient resources to undertake such a listing.