The View from Edgar Street: Hereford United chairman David Keyte invites suggestions of how to use share issue cash (From Hereford Times)
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The View from Edgar Street: Hereford United chairman David Keyte invites suggestions of how to use share issue cash
2:00pm Thursday 3rd October 2013 in Sport
NOW the decision has been made to go ahead with the share issue, I would like supporters to contact me directly at the club to highlight what they believe should be the board’s priorities for investment from any proceeds.
While a final decision will be made by the board of directors, I am keen that all supporters have an opportunity to highlight their key priorities for the development of the club.
At present, the board intends to ring-fence the proceeds from the share issue by percentages in to the following categories: Stadium Development – 60 per cent, including both ends of the ground but also further development of bar facilities including renovation of the old skittle alleys; Training Ground - 25 per cent, discussions continue with Hereford Council on the possible use of Aylestone Park as a community-based project providing facilities for our Football In The Community section; Supporters Club - 15 per cent, to pay down loans in order to clear more profit to fund the football club.
The shareholders also granted approval for the conversion of loans into shares.
Those people who have loaned monies to the club will have the right to choose to convert all or part of those loans.
Although this will not raise funds as such, the benefit to the club will be the reduction of debt on the balance sheet.
Assuming the maximum number of shares are taken up, the conversion shares will represent approximately 30 per cent of the new enlarged Ordinary Shares capital.
At last week’s meeting, I sought the views of shareholders present on any suggestions for alternative uses of funds raised. The discussion included the suggested appointment of an experienced general/commercial manager and also a wish to maintain the youth section.
While we now have a legally approved share issue, I feel it is mine and the board’s job to begin a broader dialogue with all supporters on where they feel the club needs to be devoting its efforts and resources.
After all, this share issue will only be a success if enough supporters purchase shares in the required numbers so that we can begin to make some significant investments that will positively impact the club going forward.
The best thing I can offer potential investors is complete transparency on how shareholders’ money will be spent - following an open and thorough consultation with them.
As part of this consultation, directors plan to meet various supporters groups over the coming weeks, including HUISA, HUST and London Bulls.
I also invite shareholders to visit the club anytime between 2.30pm and 8pm on Monday when my fellow directors and I will be available to receive their feedback in person and answer any questions which they may have.
Alternatively, supporters can submit their views on how proceeds of the share issue should be invested by e-mailing club@hereford united.co.uk with the subject header: “Views on proceeds of share sale”.
Please state if you wish your name to remain anonymous as the club will publish a summary of all responses.
Once the consultation closes on October 21, the board of directors will publish a summary of responses to the consultation and the decision by the board of directors on proceeds of the share issue at noon on October 30.