It looks as though current Hereford United shareholders will be offered four new shares for every one they currently own.
Whilst this committment doesn't appear in the details of the proposed share issue, BN understands that the club will put this in place.
At the shareholders meeting last month chairman David Keyte hinted at a four for one deal.
As mentioned in Sunday's BN article, some shareholders who have purchased shareholdings recently will lose out. That's because in most cases they will have bought their shares at over, or well over, £1 each.
Chairman David Keyte will be one of these in so much as he paid Graham Turner circa £15/£20 per share when he bought out the previous chairman. Should the issue go ahead those 6,000 odd shares he purchased will be worth £1 each.
Chairman David Keyte will be one of these in so much as he paid Graham Turner circa £15/£20 per share when he bought out the previous chairman. Should the issue go ahead those 6,000 odd shares he purchased will be worth £1 each.
In any case current shareholders will lose out because their influence in the club will be greatly diminished. For example someone with 1000 shares currently 'owns' 2.5% of the club - there are just under 40,000 shares in the club at present. Should the share issue go ahead they will then own 4000 shares out of a possible circa 2,000,000 - a much lower percentage.
Finally the cost of the issue and associated work is expected to be close to £100,000.
Finally the cost of the issue and associated work is expected to be close to £100,000.