colinstein 294 Posted January 25, 2015 Share Posted January 25, 2015 I understand that we'll need a new share issue to raise money after the EGM but what's this "rights issue" they're talking about. How does that work and what's the difference from a new share issue ? 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,366 Posted January 25, 2015 Share Posted January 25, 2015 A rights issue is basically a share issue that is initially only offered to existing shareholders. This ensures existing shareholders have the opportunity to maintain their existing percentage holding in the company. 0 Quote Link to post Share on other sites More sharing options...
colinstein 294 Posted January 25, 2015 Author Share Posted January 25, 2015 Right ta will it be a new rights issue or share issue after the EGM ? 0 Quote Link to post Share on other sites More sharing options...
the gunslinger 3,366 Posted January 25, 2015 Share Posted January 25, 2015 They only wanted one when Ashley was to buy the shares. Now they want loans. 0 Quote Link to post Share on other sites More sharing options...
BrahimHemdani 1 Posted January 25, 2015 Share Posted January 25, 2015 Right ta will it be a new rights issue or share issue after the EGM ? A rights issue is the normal kind of share issue in a company which allows existing shareholders to have first refusal on the issue of new shares by the company. These rights protect shareholders against dilution of their shareholdings. So if you own 10% of the existing shares you would have the right to purchase 10% of the new shares so that you still have 10% of the new total, if you decide to take up your "rights". These rights can be disapplied subject to a Special Resolution at the AGM or EGM called for that purpose. A 75% vote in favour is required. This was not achieved last time. 0 Quote Link to post Share on other sites More sharing options...
trublusince1982 243 Posted January 25, 2015 Share Posted January 25, 2015 dont think there will be one anytime soon. 0 Quote Link to post Share on other sites More sharing options...
colinstein 294 Posted January 25, 2015 Author Share Posted January 25, 2015 dont think there will be one anytime soon. but surely that's going to happen after the EGM.....6 weeks ! 0 Quote Link to post Share on other sites More sharing options...
trublusince1982 243 Posted January 25, 2015 Share Posted January 25, 2015 if the egm happens which until announced officially will hold off on . I would imagine one would be called if it goes the 3 bears way . at this point in time its way off on the horizon with alot of if buts and maybes inbetween. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted January 25, 2015 Share Posted January 25, 2015 It is absolutely an obligation of the Board to at least attempt to offer up a share issue. Plain and simple. You need 75% shareholder approval to waive the rights issue - this is due to dilution. However, there is absolutely no reason to offer a "regular" rights issue which would allow each and every current shareholder (at the rights issue cut off date) the opportunity to maintain their %age shareholding but, at the same time, get funds into the Club without being hamstrung by ridiculous loans on club assets. If there is enough of an appetite to take up the rights issue (and there is no reason that T3B, King and the supporters groups wouldn't support a rights issue) then it is clearly a far more logical option than a loan - as previously discussed, a loan being provided to a club which is already cashflow negative makes absolutely ZERO sense. What this club needs is a CAPITAL injection (share issue), not a LIABILITY injection (loan). If the Board continue down the road of attempting to secure loans when there clearly seems to be an appetite by certain groups for a capital injection via a share issue then the current shareholders should be looking to take legal recourse under the Companies Act for breach of fiduciary duty. Capital is needed, not loans. We cant pay the loans we already have on the books so who the hell comes up with the bright idea of looking for ANOTHER loan which we cannot pay ???? (that is a rhetorical question....). 0 Quote Link to post Share on other sites More sharing options...
trublusince1982 243 Posted January 25, 2015 Share Posted January 25, 2015 ashley doesnt care for what is right or sensible for the company and he will use every bit of his groups smarts,wealth and influence to ensure he remains all powerful. The club becoming financially secure while he cannot buy control through shares will meet every obstacle he can throw. hopefully king or the 3 bears manage to counter and are successful but for me delays are their enemy. 0 Quote Link to post Share on other sites More sharing options...
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