EGM to approve share issue

[T-1000 174]

  On 15/08/2018 at 08:37, Frankie said:

It will primarily be converted to shares for those who have provided equity via loans in lieu of such.

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Has it been reported what the additional cash inflow to the club will be as opposed to the conversion of loans to equity. 

[Frankie 8,869]

  On 15/08/2018 at 09:44, T-1000 said:

Has it been reported what the additional cash inflow to the club will be as opposed to the conversion of loans to equity. 

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Don't think so but I'd expect a further share issue once this one is completed along with the Takeover panel stuff being resolved.

 

That will hopefully go straight to club.

[MrGaryValentine 85]

Will there be any real cash made available or is this just a tidy up exercise?

[Frankie 8,869]

  On 15/08/2018 at 09:56, MrGaryValentine said:

Will there be any real cash made available or is this just a tidy up exercise?

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Difficult to say for certain but I'd imagine most, if not all, will be debt for equity so mainly a paper exercise.

 

@Bluedell, @forlanssister and @craig are the experts though...

[RabiDuck 94]

I wondered if the offering might have excluded Dave King to drop him below the TOP threshold and get rid of that problem but doesn't look like it is!

[Frankie 8,869]

  On 15/08/2018 at 10:38, RabiDuck said:

I wondered if the offering might have excluded Dave King to drop him below the TOP threshold and get rid of that problem but doesn't look like it is!

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It does that have affect if you read the small print.

 

He'll still have to make the TOP offer by tomorrow, it just makes it pretty much certain it won't be accepted by over 50%.

[Frankie 8,869]

More info on the TOP timeline from Jas:

 

 

[compo 7,808]

Let's suppose down the line there is a further share issue  for the public/fans to buy is there anything in place to stop the fat man buying them up .

[craig 5,199]

  On 15/08/2018 at 10:06, Frankie said:

Difficult to say for certain but I'd imagine most, if not all, will be debt for equity so mainly a paper exercise.

 

@Bluedell, @forlanssister and @craig are the experts though...

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More than likely it will be to convert the current debts (from directors and larger shareholders) into equity so, as you say Frankie, a conversion and simply a book-keeping (or paper) entry - in accounting terms it simply moves a liability (debt) to the shareholder's equity (shares issued/share capital) - which strengthens the balance sheet by removing debt from it.  Bona fide, legitimate and happens fairly frequently.

 

Some of the issue will HAVE to be cash because not all of those invited into the share offering are owed money by the club - Club1872 for example.  They only have shares in the club but are not owed any money by the club - so if they take up their offering then that will be cash into the club which cannot be converted from debt (club has no debt to C1872) - so there is likely to be fresh cash injected too, but probably only in the event of those not current creditors taking up their rights in the share issue.

 

I suspect any new cash in this share offering will be used for working capital - for two reasons - the first being that the fresh cash injection is likely to not be significant and, secondly, I would suspect that another share issue will take place once the TOP stuff is resolved which would then result in, probably, 100% of any uptake in the offering being freshly injected cash with none being conversions.

[Bill 13,717]

  On 15/08/2018 at 08:56, Darthter said:

Apparently, only being offered to specific existing shareholders.....therefore the percentage of those not included will be diluted. 

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Assuming they all take up their full option. Or that every participating shareholder is granted equal rights.