Following the recent issue of ‘fans shares’, filings at Companies House will reflect the issue of 39,000 Ordinary £1 Shares to 24 individual fans. The Resolution allowing this issue also allows for further share issues in the future.
The proposed issue of up to 289,000 Ordinary Shares covers the 239,000 already in issue (4 Founding Shareholders at 50,000 each, plus the ‘fans shares’), allowing a further 50,000 to be issued.
We have a prospective 5th ‘Founding Shareholder’ who wishes to invest £50,000 into the club. Rob Crawford came forward with this offer some time ago. The offer was accepted by the Board and Founding Shareholders, but was put on hold to allow the issue of ‘fans shares’ to go ahead as previously agreed, and give time to consult with Hereford United Supporters’ Trust (HUST).
The HUST Board is aware, and supportive, of the need for further capital in the club. They recognise its need in order to underpin the club structure and that of the stadium. Edgar Street has had considerable capital spent on it recently in order to obtain a safety certificate, and requires more on an ongoing basis, as any old stadium would. Generally, it is accepted that the club must not be undercapitalised.
HUST originally agreed to the option of acquiring 250,000 shares over 3 years in order to obtain 50% ownership. The HUST Board, in line with its and our policy of transparency, wish to seek its membership’s approval in order to increase the initial share capital it requires from £250,000 to £289,000 in order to allow Rob Crawford to introduce £50,000 on the same terms as the other Founding Shareholders. HUST would have an extended timeframe of 5 years rather than 3 years to do this.
HUST will be addressing its membership on this matter shortly.