Club statement: Loan converted to equity

[Cinio Dydd Sul]

Will the club or squad see any actual benefit of this 'investment'?

Or are they just putting into the clubs name that they'll get back if / when they sell?

 

[Darran]

Will the club or squad see any actual benefit of this 'investment'?

Or are they just putting into the clubs name that they'll get back if / when they sell?

It’s been done to avoid ‘more’ debt.

https://www.swanseacity.com/news/club-statement-april-12

 

[Niigata Jack]

Will the club or squad see any actual benefit of this 'investment'?

Or are they just putting into the clubs name that they'll get back if / when they sell?

Next Level........ :roll:

 

[Risc]

Will the club or squad see any actual benefit of this 'investment'?

Or are they just putting into the clubs name that they'll get back if / when they sell?

It’s just diluting the shares of the minority shareholders, cleaning the books for the upcoming investment (sale).

Surely

 

[PSumbler]

And so the Trust shareholding reduces even more - now a total of 11.5% and the "non dilutable" 5% at 2.7%...

Value of Trust shareholding is £3.5m based on todays share price

 

[Cinio Dydd Sul]

And so the Trust shareholding reduces even more - now a total of 11.5% and the "non dilutable" 5% at 2.7%...

Value of Trust shareholding is £3.5m based on todays share price

Sorry if this is a dull question....

But the non dilutable 5% has been diluted!?

 

[waynekerr55]

And so the Trust shareholding reduces even more - now a total of 11.5% and the "non dilutable" 5% at 2.7%...

Value of Trust shareholding is £3.5m based on todays share price

So are the non dilutable shares actually dilutable?

 

[exiledclaseboy]

Sorry if this is a dull question....

But the non dilutable 5% has been diluted!?

The voting rights were essentially the only thing that were non dilutable.

 

[PSumbler]

Sorry if this is a dull question....

But the non dilutable 5% has been diluted!?

The Trust always claimed that the 5% could not be diluted but it can - it is 47500 shares out of a total shareholding (which now stands at more than 1.7m)

Its a 2.7% shareholding that carries 5% voting rights. Which is pretty much meaningless when 95% of the voting rights sit elsewhere.

 

[Cinio Dydd Sul]

The voting rights were essentially the only thing that were non dilutable.

Wow. So what percentage do the trust actually now own?

 

[PSumbler]

Wow. So what percentage do the trust actually now own?

11.5% of which 2.7% are the Class A shares

Based on a £30m valuation of the club its about £3.5m

 

[Niigata Jack]

11.5% of which 2.7% are the Class A shares

Based on a £30m valuation of the club its about £3.5m

Which will be much less at the next dilution then and there will be another dilution that seems obvious, so from a strong position of owning 21% of the club, to what will no doubt end up being worthless, unbelievable. :x :x :x

 

[PSumbler]

Which will be much less at the next dilution then and there will be another dilution that seems obvious, so from a strong position of owning 21% of the club, to what will no doubt end up being worthless, unbelievable. :x :x :x

First name terms with club staff mind and welcome in the directors box whenever they want. Which is most games for some...

 

[PSumbler]

And given the money has been credited as this "investment will help fund ongoing running costs within the club and avoid more debt on the club’s balance sheet."

It tells you what a dreadful financial position the club must be in at the moment that we need seven figure cash injections...

I mean it couldnt be any other reason could it?

 

[3swan]

And given the money has been credited as this "investment will help fund ongoing running costs within the club and avoid more debt on the club’s balance sheet."

It tells you what a dreadful financial position the club must be in at the moment that we need seven figure cash injections...

I mean it couldnt be any other reason could it?

It could be a precursor to a sale.

Or at least in a few weeks, "we don't want to sell players but we had to put in £1m a few weeks ago and now need more."