Share issue

Herts Green · Jun 11, 2020

I know this has been discussed before but Wimbledon have just raised £2 million through a share issue: https://twitter.com/kieranmaguire/statu ... 06688?s=21

I have to say I don’t really understand the practicalities of such a scheme but is there a reason why argyle wouldn’t do this?

KFA · Jun 11, 2020

AFCW PLC is a Public limited company. Argyle is a Private limited company. Different rules apply in a number of respects including offering shares to the public.

tawtongreen · Jun 11, 2020

Is possible to issue shares in a private company I believe, in a non voting, non equity holding, non interest bearing basis. If correct (& most importantly, SH & his board wish to do so}, although semi retired would give £500/1000 to participate.
Great idea, if could be done & they support it, could give SH some of his investment back without relinquishing any control.
With our bigger fan base than AFCW, believe we could raise much more than £2m easily, given time,
Would re-assure Mr & Mrs H that we want to help, not just drain them of their wealth - see recent announcement about 'last investment'.......

philevs · Jun 11, 2020

tawtongreen":3tzdpl9w said:
Is possible to issue shares in a private company I believe, in a non voting, non equity holding, non interest bearing basis. If correct (& most importantly, SH & his board wish to do so}, although semi retired would give £500/1000 to participate.
Great idea, if could be done & they support it, could give SH some of his investment back without relinquishing any control.
With our bigger fan base than AFCW, believe we could raise much more than £2m easily, given time,
Would re-assure Mr & Mrs H that we want to help, not just drain them of their wealth - see recent announcement about 'last investment'.......

I agree, if it’s possible it’s a great idea.
Is it worth putting it forward to someone at the club / SH / chief exec?

Quintrell Green · Jun 11, 2020

SH might not wish to water down his equity interest, but on the other hand if 'push comes to shove' it could be a way of injecting needed working capital until such time as normal cash flow is achieved.

the corkscrew · Jun 11, 2020

I suggested a bond issue to SH recently, so effectively a fan investment over 3-5 years at low rate of return. As you say, to let fans participate and also show him we wanted to contribute.
His reply was essentially that if needed, he might consider something like that. But that essentially 'we will be OK'.... so not at the front of his mind.

Adam R · Jun 11, 2020

I think a bond would be a better solution.

Shares would not have a 'market', so what are they worth?

They wouldn't have voting rights, probably not a divided so it would ultimately become more of a donation than a share.

Quintrell Green · Jun 11, 2020

Adam_R":isyi48k7 said:
I think a bond would be a better solution.

Shares would not have a 'market', so what are they worth?

They wouldn't have voting rights, probably not a divided so it would ultimately become more of a donation than a share.

The Argyle company could make share buy back offers as and when it is sufficiently liquid to be able to do so. I do not see the need for the original share issue to end up as a donation, unless the company goes 'belly-up'. Under SH's shrewd control, I would not normally anticipate that happening.

JannerinCardiff · Jun 11, 2020

I’d buy bonds or shares in Argyle..

Rush Goalie · Jun 12, 2020

I'd buy shares but only to own a very small piece of the club, so non-equity shares don't really appeal. If there was enough demand for, say, 10% of the club, across multiple supporters, it would be a way of giving the fanbase a share and say in the direction of the club - if it also came with a board seat for an elected rep.

warney · Jun 12, 2020

Adam_R":1sas32h5 said:
Shares would not have a 'market', so what are they worth?

They wouldn't have voting rights, probably not a divided so it would ultimately become more of a donation than a share.

A bit like the ones I bought in Aston Martin a couple of years ago, then!

A bond issue would probably be something of interest to lots of fans should some financing be required in the future.