I?m sorry but I don?t agree with JB at all

To start, thanks to Michael Foulger for his amazing support of NCFC

From a layman?s point of view, how can it possibly be legal to sell the shares at ?25 a pop and then to ?30 to everyone else the next day as you appear to be implying (Apols if you are not)

There surely will be a book valuation on the shares based on the assets of NCFC PLC and we will sell the shares at this value. Of course this value may change over time and there may be a spread between the buy and sell price but the spread won?t be 20% (?25-?30).

As far as I know there was only around ?1 mill worth of unissued shares and under the old rules we would need an EGM to get this new share creation through. By allowing NCFC to create shares we can attract new money into NCFC. (I hope this is a correct summary)

MF?s ?2 mill share purchase would dilute the % share interest in NCFC to the remaining shareholders, as evidenced by D&MWJ now having a 53% stake, but for the remaining shareholders this does NOT dilute the value of their shares.

What you are implying NCFC have done is dilute the value of the shares to the remaining shareholders as they will have sold a significant number shares at below market price and the value of the company on a per share basis will be less.

This would have been OK in a rights issue as all can participate and it will have been approved in a shareholder meeting but to just one shareholder? I?m sure that would not be the case.

Of course all of this could be complete boolax from someone who is just trying to apply a little common sense here.

The acid test would be to pop into to Carrow Road with a cheque and ask to buy four shares and find out if ?100 is enough to cover it.

Posted By: KentonCanary, Feb 9, 14:57:13