Downing Strategic Micro-Cap Investment Trust plc

13 November 2024

On 28 February 2024, shareholders in the Downing Strategic Micro-Cap Investment Trust (DSM) approved the managed wind-down of the Company. Since then, five special interim dividends have been announced following the Board’s stated intention of returning cash to shareholders in the most efficient way possible.

As announced on 18 June, the DSM Board received a request to requisition a general meeting of the Company from Vidacos Nominees Limited, acting as nominee of Milkwood Capital Limited. The requisitioned general meeting of the Company was held on 5 August 2024, and all requisitioned resolutions were voted on by way of a poll. None of the requisitioned resolutions were carried. The results of the poll and all of the requisitioned resolutions can be found here Result of Meeting - 12:31:26 05 Aug 2024 - DSM News article | London Stock Exchange

Mr Aldous and Mr Legget remain on the Board, which will continue to liaise with the Investment Manager in order to return capital to shareholders as efficiently as possible in accordance with the Company's managed wind-down.

Hugh Aldous, Chair of Downing Strategic Micro-Cap Investment Trust plc, said: "We have always maintained that the actions of Milkwood in bringing these resolutions and forcing us to hold a wholly unnecessary General Meeting were entirely self-serving and against shareholders' best interests. We are pleased that shareholders have listened to our advice and have voted against Milkwood's resolutions and acted to protect their interests. Thank you. We will now proceed expeditiously to complete the task our shareholders have set us: namely to liquidate the assets in the fund and return the resulting proceeds to shareholders to dispose of as they see fit."  

The first special dividend of 30p per share was paid on 26 April, a second of 12p per share was paid on 21 June, with the third of 17.5p per share, paid to shareholders on 18 July. A fourth dividend of 2.2p per share was paid on 23 August 2024 and a fifth special dividend of 2.2p per share went ex dividend on 31 October 2024. This is due to be paid on the 22 November 2024. This has resulted in aggregate distributions of 63.9p per share having been paid out during the managed wind-down (amounting to approximately 96.83% of the Company's NAV as at 28 February 2024 (the date at which shareholders approved the managed wind-down) through special dividends. Following the payment of the fifth special interim dividend, the Board intends to take steps to put DSM into liquidation.

The Company now has assets of £2.47m. The current Net Asset Value per share (at 8 November 2024) is 5.42p.
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The Board of Directors of DSM announced the results of the Annual General Meeting of the Company held on 21 August. Further information on these resolutions can be found here https://www.londonstockexchange.com/news-article/DSM/result-of-agm/16629613
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