Downing Strategic Micro-Cap Investment Trust PLC commences an Equity Buyback Plan for 7,791,532 shares, representing 14.99% of its issued share capital, under the authorization approved on July 7, 2021.
July 07, 2021 at 12:00 am EDT
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Downing Strategic Micro-Cap Investment Trust PLC (LSE:DSM) commences share repurchases on July 7, 2021, under the program mandated by the shareholders in the Annual General Meeting held on July 7, 2021. As per the mandate, the company is authorized to repurchase up to 7,791,532 shares, representing 14.99% of the issued share capital. The minimum price that may be paid for each ordinary share will be the nominal value per share and the maximum price that may be paid for each share will be the higher of 105% of the average of the middle market quotations (as derived from the Official List) of the ordinary shares for the five dealing days prior to the date on which the market purchase is made and the higher of the price quoted for the last independent trade of and the highest current independent bid for, any number of ordinary shares on the trading venue where the purchase is carried out. The repurchased shares will be sold, transferred, held in treasury otherwise will be cancelled. The repurchase is valid till next Annual General Meeting of the company to be held in 2022.
Shore Capital acted as financial adviser and broker to the company.
Downing Strategic Micro-Cap Investment Trust plc is a United Kingdom-based investment company. The Company's investment objective is to generate capital growth for shareholders over the long term from active involvement in a focused portfolio of United Kingdom micro-cap companies (those whose market capitalizations are under £150 million at the time of investment) targeting a compound return of 15% per annum over the long term. The Company's portfolio of investments typically comprises between 12 and 18 holdings. It typically seeks to hold between 3% and 25% of the equity of these investee companies, notwithstanding the ability to use debt instruments alongside equity. Typically, investments are appraised over a three to seven-year investment horizon. It invests in various sectors, including consumer discretionary, industrials, cash, support services, electrical equipment, financial services and telecommunications. The Company's investment manager is Downing LLP.
Downing Strategic Micro-Cap Investment Trust PLC commences an Equity Buyback Plan for 7,791,532 shares, representing 14.99% of its issued share capital, under the authorization approved on July 7, 2021.