Earlier this week BN sent a list of questions to Stuart Blake, who is helping Hereford United with the proposed share issue. For the record two of the main contributers to BN are also shareholders in the club.
So like many other shareholders, BN feels that there are some points in the documentation that need clarifying.
Below are our questions.
Can you confirm that exising shareholders will receive four new shares for every one they now own?
Why could this not have included with the details - was there a legal reason and if so what was it?
Why could this not have included with the details - was there a legal reason and if so what was it?
Recently shares in Hereford United
have traded at a level between circa £7 and £20. Therefore to value
existing shares at just 25p seems wrong. How can you justify only giving
existing shareholders just 4 new shares for every one they currently
own?
The documents say only 'qualified investors' can purchase shares. That suggests current shareholders and many others will not be able to invest. Why is this?
The documents say only 'qualified investors' can purchase shares. That suggests current shareholders and many others will not be able to invest. Why is this?
It would appear that the New Supporters Trust will not be able to purchase shares. Is this correct?
Why can only 75% of existing loans to the club be turned into shares, why not 100%. What's the thinking behind this?
In the documents it says that £450K of the amount raised will be used to fund the Blackfriars End stand. Yet we were told at your presentation that the stand would be paid by, in effect, whoever builds on the site. Either the club needs £450K or the 'builder/hotelier/whoever' pays. Which is correct?
If the issue goes ahead the chances are that the chairman could own 40%, perhaps more of the shares - up from his current 15% or so. Yet someone who currently owns say 2.5% of the club (ie has 1,000 shares at present) might only own 0.025% after the issue. In your opinion is this fair?
It's said the cost of the issue is £100K if fully subscribed. Can you give a breakdown of these costs?
There seems to be a mistake in the figures quoted on pages 7 and 10 of the documents compared with page 5. Is the figure of £2,160,000 correct as that appears to include the share issue receipts and the conversion. Shouldn't the figure be just the share issue? Also on page one it says 75% of existing loans into shares, yet on page 5 it says 70%. Which is correct?
Finally can you explain what resolution three (page 8) means. Particularily the sentence about 'the Directors....in persuance of such offer or agreement'..etc.