Reply With QuoteCardiff City issue 1.74 BILLION shares for 1p each. pic.twitter.com/3rHngZjqns
— Kieran Maguire (@KieranMaguire) June 24, 2023
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Just received a notification from Companies House that City filed a return of allotment of shares document there recently. It contains the following description .
EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES. EACH SHARE IS
ENTITLED PARI PASSU TO DIVIDEND PAYMENTS OR ANY OTHER DISTRIBUTION. EACH
SHARE IS ENTITLED PARI PASSU TO PARTICIPATE IN A DISTRIBUTION ARISING FROM A
WINDING UP OF THE COMPANY
Anyone know if this is something we should be concerned about?
Cardiff City issue 1.74 BILLION shares for 1p each. pic.twitter.com/3rHngZjqns
— Kieran Maguire (@KieranMaguire) June 24, 2023
Looks like we did it last year too, raising £19 million on 23rd June 2022. This time raising £17.4 million.
Perhaps it's Tan converting some debt to equity?
Not really that significant by the looks of it. According to a March 2022 WOL article, "Cardiff relied heavily upon the backing of their Malaysian owner who lent the Bluebirds a further £16m during the year."
So that's around one year's worth of debt converted? The same article says, "As majority shareholder, the debt owed to Tan stands at £61m..."
I'm guessing it's even more since then?
Nice to see but still a long way from:
Bluebirds owner promises to make the club debt-free by 2021
But then beggars can't be choosers. Thank you Mr. Tan!
Thanks, that seems to explain it.Originally Posted by Carl Dale's Mole
From Keith Morgan of the Supporters Trust:
"It has come to our attention from Companies House that the club has allotted a further 1,747,956,600 shares with a nominal value of 0.01p
I have been in contact with the club who confirm what I had thought in that it is a cash injection for shares equating to nearly £17.5m in order to ensure the club remains compliant with Profitability and Sustainability Regulations.
In this case, such compliance demonstrates that there is enough cash in the club to cover the cash drain caused by losses in the previous season
There was a similar allotment in June 2022."
No debt-to-equity conversion then, just a cash injection. Doesn't really add up to Dalman's "Tan is pumping 3 million a month into the club to stay afloat".
Still positive news though and a step in the right direction. Adds up perfectly to most people.
This you?
It’ll be to allow Tan to cover last years losses with equity investment rather than additional debt. Nothing to get excited about I’m afraid
— Tim Wegener (@timcwegener) June 24, 2023
Also, I think "most people" would agree that converting existing debt to equity would have been the better news here.
From a supporter point of view the impact on the ability to comply with FFP without the threat of a points deduction is the most important factor going into this season.
Fair enough! I'd suggest converting some of the massive debt the club owes Tan would be more welcome news than us relying and needing Tan's charity to avoid a points deduction. I'd rather be less in his grip than more but each to their own I guess.
Surely it's the same thing, if they converted old debt to equity, new debt would have increased by last years £17m.
I'm trying to understand this but I'm four cans in and my alcohol tolerance isn't what it used to be.
By my limited understanding the injection of funds meant the club broke even and wouldn't go £17.4m further into debt.
Does this lower rate this year mean the rebuild last year only saved the club roughly £1.6m?
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