By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions. We in turn value your personal details in accordance with our Privacy Policy.
Please log in or register. Registered visitors get fewer ads.
If new shares are issued will you buy any? on 14:34 - Jun 6 by James1980
£3 sounds like a very reasonable amount and as you say would add up to a substantial figure to shore up the balance sheet. Would it be greedy to suggest meeting in the middle between £3 and £6 and issuing the new shares at £4-£4.50 a share?
Shares are only worth what someone might pay.
£2 is the last time they were issued; £6 comes from the ill-fated EGM resolutions which were challenged and then withdrawn.
It's worth the Company considering.
For existing shareholders and supporters it would be good news.
First, it would see off the ability for the Directors to sell off the club to a third party as it would mean all the shares that could be issued were issued. The only way one party could negotiate a 50.1% holding would be to go around 300+ shareholders and try and buy them up. Given the biggest sole shareholder owns 22% that would take some doing.
Second, it puts money into the club in the hear and now. That is needed. We heard on Tuesday that last season we lost £1m and cash is tight.
That said, I don't personally believe that shareholders would back this current Board and current CEO in their current form so it is at worst, stalemate until the situation and personnel change.
George Bernard Shaw had it right:
"He who can does; he who cannot, teaches."
https://www.visittheusa.co.uk/
If new shares are issued will you buy any? on 14:34 - Jun 6 by James1980
£3 sounds like a very reasonable amount and as you say would add up to a substantial figure to shore up the balance sheet. Would it be greedy to suggest meeting in the middle between £3 and £6 and issuing the new shares at £4-£4.50 a share?
In the real world of stock market quoted shares , share issues are generally don close to the prevailing share price. In our case, that might be considered to be whatever shares have been changing hands for privately. I would think £2- £2.50 is closer to the mark, the last thing you want to do is offer 400,000 shares at £6 and then not sell enough to warrant the effort. £2.50 would represent a 25% increase in value to those who bought at £2 and a 500% increase for any holding £50p shares,.... if you can find someone to buy them and assuming you wanted to try to sell them. Issuing £400k shares at £2.50 is probably the quickest way of raising £1m to shore up the accounts. and there is nothing to prevent the club amending the Articles and permitting further shares issues in the future. Of course, the potential investors would be more motivated to spend their money if they had complete faith in the intentions of the BoD and proper safe guards in the articles against something like the current situation happening again in the future. IE anyone who gains a majority shareholding has to buy all the remaining shares for the highest price paid for the rest of his shareholding.ie if you get to 50% plus 1 share you have to buy all the other shares too!
Its worth remembering that the Americans were prepared to buy 51% of shares in order to gain control but £6 sank that idea. Was that a carefully thought out ploy or was that the figure the directors wanted for their shares? An EGM to discuss that situation would have been interesting!
Who knows where we will be in a couple of weeks time,? Are Overcoats being taken out of wardrobes? Major shareholders now need to be in discussions with the remaining Directors to fill the empty seats and set up a plan to move the club forwards, I can't imagine that major investors will want to write off their investment and in some cases years of hard work without a fight. There may have to be some difficult compromises for all of us but compromises make more sense than just selling up to some dodgy con man and calling it a day.
0
If new shares are issued will you buy any? on 15:49 - Jun 6 with 754 views
If new shares are issued will you buy any? on 14:34 - Jun 6 by RAFCBLUE
It was in and from the original Articles of Association.
It's actually 899,999 that can be issued (originally so that any shareholder vote would bring a majority outcome and not be deadlocked).
Company has issued 502,957 over the years so there are 397,042 that could be issued by the Board, with pre-emption rights (right of first refusal) going to the existing shareholders so they have the choice and opportunity to maintain their holding.
The 899,999 (or any number) is completely judgemental and up to the Directors of a Company to judge on a case by case basis.
It's good for everyone connected with the club that the limit is there and the Board can choose to issue unissued shares whenever they like, principally to raise new funds.
We are lucky here because despite the shenanigans there are not enough shares to be issued to give a new party control, especially if the existing shareholders get their pre-emption it would mean very little, if any, to go outside existing shareholders.
If new shares are issued will you buy any? on 15:22 - Jun 6 by 49thseason
In the real world of stock market quoted shares , share issues are generally don close to the prevailing share price. In our case, that might be considered to be whatever shares have been changing hands for privately. I would think £2- £2.50 is closer to the mark, the last thing you want to do is offer 400,000 shares at £6 and then not sell enough to warrant the effort. £2.50 would represent a 25% increase in value to those who bought at £2 and a 500% increase for any holding £50p shares,.... if you can find someone to buy them and assuming you wanted to try to sell them. Issuing £400k shares at £2.50 is probably the quickest way of raising £1m to shore up the accounts. and there is nothing to prevent the club amending the Articles and permitting further shares issues in the future. Of course, the potential investors would be more motivated to spend their money if they had complete faith in the intentions of the BoD and proper safe guards in the articles against something like the current situation happening again in the future. IE anyone who gains a majority shareholding has to buy all the remaining shares for the highest price paid for the rest of his shareholding.ie if you get to 50% plus 1 share you have to buy all the other shares too!
Its worth remembering that the Americans were prepared to buy 51% of shares in order to gain control but £6 sank that idea. Was that a carefully thought out ploy or was that the figure the directors wanted for their shares? An EGM to discuss that situation would have been interesting!
Who knows where we will be in a couple of weeks time,? Are Overcoats being taken out of wardrobes? Major shareholders now need to be in discussions with the remaining Directors to fill the empty seats and set up a plan to move the club forwards, I can't imagine that major investors will want to write off their investment and in some cases years of hard work without a fight. There may have to be some difficult compromises for all of us but compromises make more sense than just selling up to some dodgy con man and calling it a day.
I think your judging of where the numbers need to be are spot on. Whether all existing shareholders take up their rights to subscribe would be the key question.
The biggest protection the club has currently is its Articles of Association.
When it was set-up in 1910 it looks to have been done in the co-operative spirit based on the founding directors and their sharing aspirations. Things like always needing 7 to 15 directors is effectively designed to promote sharing of skills and expertise and to not let the powers end up in the hands of an ill intentioned small number.
The Trust has a great role to play here as a top 10 shareholder - as do lots of other shareholders and the theme has to be good governance. A board of 15 can bring a lot to a club. We have, for some reason insisted that the minimum threshold is £25,000 of personal investment which is why we have not found that we have interested but not deep pocketed parties.
The raising of new capital can be a one off exercise at an appropriate point the first three things needed are to restore trust, appoint new leaders and build a skills base that delivers for the club.
I'm sure that SmartScout can be a cornerstone of that but the co-operative spirit, if effected well could do wonders for the club and the town.
George Bernard Shaw had it right:
"He who can does; he who cannot, teaches."
https://www.visittheusa.co.uk/
By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions.
