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, Feb 13, 11:00:41