Allotment of Shares

[kernow19]

Well, looks like the news overnight has answered all the questions raised on this thread.

 

[PilgrimScott]

Well, looks like the news overnight has answered all the questions raised on this thread.

I was just going to say the same. This hardly commented on thread actually had the clues to a big story.

 

[JannerinCardiff]

Good bit of digging...

 

[PL2 3DQ]

Companies House now has a notice of "Resolution of removal of pre-emption rights".

Which means this ...

Shareholders in a company will often benefit from ‘pre-emption rights’. These give existing shareholders first refusal when a company is issuing new shares. If pre-emption rights exist, new shares in a company cannot be offered to other potential investors without first being offered to the current shareholder.

So the current directors/shareholders are offered the new shares first, if the shares are not taken up they can be offered to outside investors.

Is this just procedure for issuing new shares to Simon Hallett or a move to entice outside investment and funding?

 

[Willis88]

Companies House now has a notice of "Resolution of removal of pre-emption rights".

Which means this ...

Shareholders in a company will often benefit from ‘pre-emption rights’. These give existing shareholders first refusal when a company is issuing new shares. If pre-emption rights exist, new shares in a company cannot be offered to other potential investors without first being offered to the current shareholder.

So the current directors/shareholders are offered the new shares first, if the shares are not taken up they can be offered to outside investors.

Is this just procedure for issuing new shares to Simon Hallett or a move to entice outside investment and funding?

Based on your research I would say that any new shares issued (and thus investment) is no longer apportioned based on the existing shareholdings.

That can mean a few things I.e.:

SH looking to take a further stake in the club without needing to offer shares to the other shareholders first

Club opening it's doors to further investors, allowing them to invest in the club without having to buy shares from existing shareholders

Given SH's overall control of the club now I would suggest option 1 from the above.

 

[PL2 3DQ]