Downing Strategic Micro-Cap Investment Trust Plc (the "Company")
LEI: 213800QMYPUW4POFFX69
DSM: Return of Capital - Board Update
28 December 2023

As announced by the Company on 9 November 2023, the board of directors of the Company (the "Board") has been considering the best means by which the Company can meet its commitment to return capital to shareholders and had concluded that it would advantage all shareholders equally if the Company were to commence a managed wind down of its investment portfolio.  The Board has worked closely with the Investment Manager to determine an appropriate managed wind down strategy and is of the view that within the first six months of 2024 up to or exceeding 50% of the Company's current market value can be returned to shareholders in cash (current bids for investments assumed to complete by then) with more than the remaining portfolio market value still to be realised through the process of complete wind down.

The Board continues to consult with its advisors on the most tax efficient method of returning capital to shareholders pursuant to that wind down, whilst also remaining open to any alternative options for the future of the Company that merit consideration.  Good progress is being made on the former, and the Board notes that bids for portfolio companies continue to be made at premiums to their share price. 

The Board expects to update shareholders further by mid-January 2024.