I don’t think this is a conversion event, but haven’t read the terms in ages

And the principle isn’t really the same as a rights issue. Not based on what I know of corporate finance at least.

Rights issues are used a way to raise funds for the business, so I guess that’s similar. But the price of a rights issue is irrelevant because all shareholders in that class can subscribe such that even if the price were £1 per share, if all shareholders take up their rights no one is diluted.

This is new issuance of shares and consequently to avoid dilution (in value terms), they have to be issued at fair value (f**k knows what that is). In reality there will be dilution in due course as football clubs waste money.

Posted By: SimonOTBC on February 13th 2023 at 11:00:41

Message Thread

Potentially seismic day for our football club 💛💚 (n/m) (NCFC) - loz, Feb 13, 07:26:07
- Oh mine.... (NCFC) - usacanary, Feb 13, 13:43:08
- Tried saying that last night (NCFC) - Old Splat, Feb 13, 09:57:12
  - It’s not a rights issue (n/m) (NCFC) - SimonOTBC, Feb 13, 10:33:38
    - It is effectively a RI (NCFC) - Old Splat, Feb 13, 10:53:15
      - I don’t think this is a conversion event, but haven’t read the terms in ages (NCFC) - SimonOTBC, Feb 13, 11:00:41
  - Does the takeover code apply … (NCFC) - loz, Feb 13, 10:16:25
- could be MMAMOTH (n/m) (NCFC) - Bristol Graham, Feb 13, 09:23:01
  - Is that bigger than MSSAIVE? (n/m) (NCFC) - Old Git, Feb 13, 09:38:35
    - It's at least COLLOSALL (n/m) (NCFC) - Under soil heating, Feb 13, 11:25:40
- Breaking news - it won’t be (NCFC) - inutero, Feb 13, 08:35:34
  - Yeah - his focus will be similar to Delia and Michael’s I think (NCFC) - SimonOTBC, Feb 13, 10:37:03
  - Tbf he’s got the brewers punching well above their weight … (NCFC) - loz, Feb 13, 08:42:49
    - though folk need to be realistic about where 'punching above our weight' gets us (NCFC) - CWC, Feb 13, 09:47:54
- Jen from Yellows last day? (n/m) (NCFC) - LincolnshireCanary, Feb 13, 08:20:47
  - Ahh Jen, the void so hollow that you shall leave. (NCFC) - Jumbo1, Feb 13, 08:54:59
- I think it could be (NCFC) - Old Git, Feb 13, 07:55:05
- Yep (NCFC) - Cardiff Canary, Feb 13, 07:28:45

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