Bluedell 5,356 Posted October 11, 2012 Share Posted October 11, 2012 One can only hope that the launch will be more professional that a website that doesn't work... To be fair, they do say from 5pm today. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,186 Posted October 11, 2012 Author Share Posted October 11, 2012 To be fair, they do say from 5pm today. Sure we can register our interest from then but a fully functional website to explain the issue to interested people should have been live when news broke early. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,186 Posted October 11, 2012 Author Share Posted October 11, 2012 Green said last week that the share issue would not be under-written. I don't see hte point in it being under-written anyway. The costs involved would be prohibitive given what the club has gone through and the fact that it is a high risk investment. Green has also said that no cash from the share issue would be going to the initial investors, which makes sense as nobody would invest if the cash was just going to flow out again with no benefit to the club. There's a big thing on the radio about it being used for working capital, but given the timing there's not much else it could be used for. Green said it would be under-written previously. What's changed? How else can investors get their £18million (IIRC) other than from monies raised? Or have they agreed to wait until we're, for example, back in in the CL meaning they see this £20million as money to be ring-fenced to deliver that profit in 3-5 years time? 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted October 11, 2012 Share Posted October 11, 2012 Green said it would be under-written previously. What's changed? How else can investors get their £18million (IIRC) other than from monies raised? Or have they agreed to wait until we're, for example, back in in the CL meaning they see this £20million as money to be ring-fenced to deliver that profit in 3-5 years time? Well i'd think so, Green has always said no-one is in it simply for a quick buck. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,356 Posted October 11, 2012 Share Posted October 11, 2012 With 500 from 800 people losing their job at my company between now and 2014, I am afraid I won't be in a position to buy whether i want to or not. I do not have a spare 500 pound lying around and I most certainly won't put my family into debt for it. I have said from the start that I think a share issue this year is too early. Your position will be replicated by many others. There is not a lot of cash floating around and it is far harder to raise cash than it was 10 years ago. It may have been better to wait 18 months with a hope that the economy improves and the current management have more of a track record. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,356 Posted October 11, 2012 Share Posted October 11, 2012 Green said it would be under-written previously. What's changed? How else can investors get their £18million (IIRC) other than from monies raised? Or have they agreed to wait until we're, for example, back in in the CL meaning they see this £20million as money to be ring-fenced to deliver that profit in 3-5 years time? I don't recall Green saying a share issue would be under-written but I don't see how practical it would be. Who would under-write it and what would the costs be? You would lose half your cash before you start, I'd have thought, although I'm no expert. As for the investors getting their cash back, there are 2 ways: 1. They sell their shares. We will need to see how the issue is structured but it could be that the prospective investors are paying a premium compared to the original investors. 2. Dividends. Hopefully we will not go down this route and it will be interesting to see what the prosepectus says. We would have to be profitable before we did this and have lots of spare cash lying around, and I don't think it will be an option. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,186 Posted October 11, 2012 Author Share Posted October 11, 2012 I don't recall Green saying a share issue would be under-written but I don't see how practical it would be. Who would under-write it and what would the costs be? You would lose half your cash before you start, I'd have thought, although I'm no expert. As for the investors getting their cash back, there are 2 ways: 1. They sell their shares. We will need to see how the issue is structured but it could be that the prospective investors are paying a premium compared to the original investors. 2. Dividends. Hopefully we will not go down this route and it will be interesting to see what the prosepectus says. We would have to be profitable before we did this and have lots of spare cash lying around, and I don't think it will be an option. Green definitely mentioned it being under-written before - possibly at the Ibrox Suite meeting a couple of months back? He may even have mentioned the name of a company but he definitely talked about a London based group. I think the new investors will be paying a premium so '1' makes sense (as does '2') but I guess both will depend on the take-up of the flotation. I don't have a huge issue is paying off investors who helped safeguard the future of the club but I'd hope Zeus are open about doing so. Raising £20million is all well and good but to do so they'll need to be clear about where the money is going. Saying a bit here, a bit there and a bit to that may appear reasonable but I don't think it will look attractive to potential investors. Do we really need £20million right now given we can't sign players, we're debt-free and have cut costs to a manageable level? Ergo, if it's for 3 years time for an 'assault' on the SPL (or some new structure) then say so and, like you say, why the rush? 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted October 11, 2012 Share Posted October 11, 2012 Must be remembered running costs are still very high for the level we're at. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,186 Posted October 11, 2012 Author Share Posted October 11, 2012 Must be remembered running costs are still very high for the level we're at. Sure - so why hasn't Green cut those costs? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,356 Posted October 11, 2012 Share Posted October 11, 2012 Do we really need £20million right now given we can't sign players, we're debt-free and have cut costs to a manageable level? Ergo, if it's for 3 years time for an 'assault' on the SPL (or some new structure) then say so and, like you say, why the rush? It would appear that we don't need the cash right now, so the timing is one of the big questions. 0 Quote Link to post Share on other sites More sharing options...
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