Shore Capital Group Limited - Acquisition of Stockdale Securities Limited

Hamilton, Bermuda: 18 February 2019 – In a filing with the Bermuda Stock Exchange Shore Capital Group Limited, (Tickers: SGR.BH, SGR.LN) announced the acquisition of Stockdale Securities Limited. The full filing stated:

Shore Capital Group Limited

(“Shore Capital” or the “Company”)

Acquisition of Stockdale Securities Limited

Shore Capital, the independent investment group, is pleased to announce that its Capital Markets Division,ShoreCapitalMarketsLimited,hasagreedtheacquisitionoftheentireissuedsharecapitalof Stockdale Securities Limited (“Stockdale”) (the "Acquisition") for an initial consideration of £4.9 million ("Initial Consideration") and a maximum deferred consideration of up to £4.0 million ("Deferred Consideration").

Stockdale serves an institutional and corporate client base offering corporate advisory and corporate broking,equityresearch,salesandtradingservicestoinstitutionalinvestors,withafocusonsmalland mid-capcompanies andlistedinvestmentfunds.Stockdale’scorporatebrokingandadvisoryteamacts for 53 corporate clients and it has dealing relationships with approximately 200 institutions. In 2017, Stockdale won the AIM award for Best Research, the last time this prize wasannounced.

Since January 2016 the business has been involved in over 70 transactions with a total value of £3.9 billion. In its most recent published accounts for the year to 30 September 2018, Stockdale reported income of £11.4 million and profit before tax of £1.5 million, with net assets as at 30 September 2018 of £5.7 million. The business employs 41 people.

Stockdale is authorised and regulated by the Financial Conduct Authority ("FCA") and completion of the Acquisition is conditional upon FCA consent to the proposed change of control (“Completion”).

The Initial Consideration is being satisfied in cash from the Company’s existing reserves and adjusted byreferencetoStockdale’snetassetpositionatCompletion.Attheendofthe18-monthperiodfollowing Completion, the Deferred Consideration will be satisfied in cash based on the achievement of certain revenuetargets.

The Company believes that the Acquisition represents a compelling strategic fit and that the combination will enhance the existing operations of Shore Capital Markets by expanding the corporate client base, adding a specialist investment funds capability to the business and by augmenting the existing corporate advisory and broking, research, sales and trading expertise. Shore Capital Markets isalreadythethirdlargestmarket-makeronAIM.TheAcquisitionisexpectedtocreateLondon’sfourth largest corporate broking and advisory business by number of retained Main-Market and AIM quoted businesses.

Commenting on the Acquisition, Simon Fine, Co-Chief Executive of Shore Capital, said:

“We are delighted to welcome the Stockdale team to Shore Capital. The combination of our complementary businesses adds scale, expertise and diversity to Shore Capital, demonstrating our commitment to serving the needs of our combined institutional and corporate clients.”

Mark Brown, Chairman of Stockdale said:

“Shore Capital and Stockdale share a like-minded, commercial approach which we believe will be an excellent fit, with the scale of the combined business enabling it to grow and benefit from the opportunities that lie ahead.”

The information contained within this announcement is deemed to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

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About Shore Capital

Shore Capital is an AIM quoted independent investment group. Founded and majority owned by entrepreneurs, for three decades Shore Capital has been helping entrepreneurial businesses reach their full potential, find committed long-term investors and develop into significant enterprises. The business offers innovative corporate advice; a leading market making business; some of the most respected investment research available in the UK; and a diverse range of high-quality investment opportunities, including its hugely successful VCTs and principal finance activities.

TheGroupisbasedinGuernsey,London,Liverpool,EdinburghandBerlin.ShoreCapitalStockbrokers Limited, Shore Capital and Corporate Limited, Shore Capital Limited and Puma Investment Management Limited are each authorised and regulated by the Financial Conduct Authority. Shore Capital Stockbrokers Limited is a member of the London StockExchange.

www.shorecap.gg