The Grimsby Town FC


Question of the Week

Will you attend any Checkatrade Trophy games next season?

All of them
All home games
The odd game
Knock out games
Final only
Total boycott


Rights Issue

By: Rob Sedgwick
Date: 23/07/2000

Rights Issue

News From 7th May 2000

Doug Everitt

The Grimsby Town board are proposing to increase the company's authorised share capital to £5m, resulting in a further 4,400,000 shares being available for subscription.

Existing Shareholders would be able to buy two new shares for each one they hold at par value. They would also be given the opportunity to buy more with the board seeking authority to issue any shares left over to interested parties.

The board does not have the authority to issue shares to anyone (under its own rules),, and the proposal must be backed by a 75 per cent (in shares) majority vote of the existing shareholders, whose percentage stake in the club would of course be vastly diluted unless they fully take up their offer of new shares.

As a first stage, the club has written to existing shareholders asking them to fill in a questionnaire. This will tell the board whether or not they back the idea.

If shareholders do, then they will be called to an extraordinary general meeting during the summer to pass the proposals.

The board would then also be looking to increase the company's authorised share capital to £5 million.

The club's authorised share capital currently stands at £600,000, of which only £236,900 has been issued, a relatively small sum for a company of GTFC's size.

The board's letter to shareholders states:

"As part of the company's plans to develop the business and new stadium your board is proposing a rights issue to assist the club in raising additional working capital.
"The development of the business and relocation to a new stadium are Town shares vital to ensure that Grimsby Town can increase its income and keep pace with the ever increasing financial commitments of operating a professional Football League club.
"The board wish to ensure that the proposals regarding the rights issue have the support of the majority of shareholders before incurring the extra costs that would be involved.''

The developments come at a time when the club is said to be losing £15,000 a week with debts of over £1 million.

It has a financial commitment to the new £14 million, 20,000-seater stadium though would expect much of it to be financed by grants and associated commercial development. The shortfall is thought to be around the £3 million mark.

A picture of Rob Sedgwick's share certificate for a stake in 0.02% of the club can be seen below.

GTFC Share Certificate

Add To Facebook

This site is by the fans, for the fans, and we will consider articles on any subject relating to the Mariners whether it be related to current news, a nostalgic look back in the past, a story about a player, a game or games in the past, something about Blundell Park or football in general. Click here to submit your article!

Related Stories

Forum Latest
TitlePostsLatest Post
Danny Andrew????21Paddythebadger23/05 13:17
Even Scarborough have..........2arryarryarry23/05 13:12
Other Clubs Transfer News98promotion plaice23/05 12:49
Word Association Game40,178topuphere66623/05 12:47
Mitch Rose115Mikey_34523/05 12:10
Ariana Grande concert4Skrill23/05 11:38
Today's football day at BP - anyone got a report?24LondonMariner4323/05 11:16
Change/add-a-letter/remove-one Word Game thread...27,366Biccys23/05 11:14
Name the street you grew up on25cmackenzie423/05 10:37
Blackburn6OllieGTFC23/05 09:47

News  | Features  | Submit Article  |   | 
© 2017