A Fourth Emergency Share Rights Issue

[SBRed48]

( Thank you to Exiled on BBS for researching this information)

On 3rd May 2023 a fourth Share Rights issue was announced for Barnsley FC Investment Company Ltd, the collective name of the owners of BFC on the Hong Kong Registry This was smaller than the previous three but an indication that yet more money is required to keep the club ticking over. As I have said before alarm bells would be ringing at most public companies if a share issue was required just to pay for day to day spending rather than for a specific project but the fact that we have now had four in a year will have loud sirens going off in terms of the club's finances.

The share issue was to raise another £292,596 with existing shareholders having the right to take up shares in proportion to their existing holdings. The following was raised--

Parekh £157,559
Edmonds Hedge Fund "Jamakepe"/ JAQ £66,419
PMG ( Conway Hung) £6,300
Crynes ££62,318

The most interesting fact here is that Chien Lee did not take up his entitlement and PMG (Conway and Hung) took up a reduced amount.

This does raise speculation that Lee and Conway/ Hung are ready to sell their shares in the club. Is this the "big and exciting" news that Ahmad has teased fans with? In effect nothing will change in terms of boardroom control but it will cost (probably) Parekh several millions to buy them out.

[SBRed48]

Just in summary a total of (rounded) £ 6.6 million has been raised over the last year in the four Share Issues, used on day to day spending rather than specific projects. Of this £6.6 million the following have bought shares worth--

Parekh £2,184,159
Lee £1,864,500
Crynes £1,386,318
Edmonds/ JAQ £434,919
PMG Conway Hung £406,700
Former Shareholders £327,500

If Parekh were to buy out Lee and PMG/ Conway Hung it was cost him the value of their shares bought at the time of the takeover in 2017, plus the shares bought by Lee/ PMG this year ( £2,271,500), plus any interest and profit sought by the sellers.

[Arblasterfromthepast]

And that's where the problem will lie SB i.e. agreeing on a price to buy. The shares aren't worth what they were in 2017.

[animallittle3]

And that's where the problem will lie SB i.e. agreeing on a price to buy. The shares aren't worth what they were in 2017.

The shares aren't even worth what they've paid for them these last 12 months Arby in my opinion .

[pass_and_move]

Whatever happens, I dare say that the clubs prime objective is to sell, sell, sell. The likes of Luca Connell, Mads, Styles etc will be sold on. That is unless Parekh has bottomless pockets and buys out Chien Lees shares and then takes a hit out of his own pocket to give the club a chance of promotion next season. All questions that we have no answer to unless a club statement is made. Speculation will be rife this summer. I enta clue what to expect.

Ahmed has dangled a carrot. Whether it's to do with this we shall anticipate developments.

[animallittle3]

Whatever happens, I dare say that the clubs prime objective is to sell, sell, sell. The likes of Luca Connell, Mads, Styles etc will be sold on. That is unless Parekh has bottomless pockets and buys out Chien Lees shares and then takes a hit out of his own pocket to give the club a chance of promotion next season. All questions that we have no answer to unless a club statement is made. Speculation will be rife this summer. I enta clue what to expect.

Ahmed has dangled a carrot. Whether it's to do with this we shall anticipate developments.

I'm trying to put some science behind this with everything on the table and without emotion coming in to it .

First of all the shares are over valued , they are valued at what ever finance is needed to keep the club financially solvent and not valued at what the club is actually worth .

Absolutely nobody would purchase the club with the shares priced at that level .

What we have here is equivalent to what occurs from time to time in the housing market and it's called Negative Equity .

The value of the house is lower than the mortgage on it .

That's only a problem if you are looking to sell the property , if you are happy where you are you can sit back and wait for the prices to rise .

Unfortunately that not quite how in my opinion it works in football , you have to make the club more valuable than the price you paid for it .

They are now in a funny situation because having initially purchased the club for a reasonable price , at least in the sense of what was agreed on paper and not necessarily what actually played out they are now stuck with a club that will without question leave them out of pocket .

Quite how long they are prepared to have this monkey on their backs I don't know but in my opinion only a genuine fan from childhood would have the motivation in these circumstances for the long haul and even Patrick got pyssed off acting as guarantor eventually .

The other option is to invest more money in to the club and hope it can strike gold in a Brentford or Luton type way .

It's heading towards Judgement Day in my opinion , stick , twist or sell at a loss .

[pass_and_move]

I'm trying to put some science behind this with everything on the table and without emotion coming in to it .

First of all the shares are over valued , they are valued at what ever finance is needed to keep the club financially solvent and not valued at what the club is actually worth .

Absolutely nobody would purchase the club with the shares priced at that level .

What we have here is equivalent to what occurs from time to time in the housing market and it's called Negative Equity .

The value of the house is lower than the mortgage on it .

That's only a problem if you are looking to sell the property , if you are happy where you are you can sit back and wait for the prices to rise .

Unfortunately that not quite how in my opinion it works in football , you have to make the club more valuable than the price you paid for it .

They are now in a funny situation because having initially purchased the club for a reasonable price , at least in the sense of what was agreed on paper and not necessarily what actually played out they are now stuck with a club that will without question leave them out of pocket .

Quite how long they are prepared to have this monkey on their backs I don't know but in my opinion only a genuine fan from childhood would have the motivation in these circumstances for the long haul and even Patrick got pyssed off acting as guarantor eventually .

The other option is to invest more money in to the club and hope it can strike gold in a Brentford or Luton type way .

It's heading towards Judgement Day in my opinion , stick , twist or sell at a loss .

A fair summary that Animal. Of course things would've been different if we'd have gone back up to the championship on Monday but the reality is that we didn't.

SBred warned us of promotion shyte or bust. I know you and I felt the same as him. It's an interesting summer that lies ahead. I don't expect it will be good news on the most part but life is full of surprises.

[Arblasterfromthepast]

The shares aren't even worth what they've paid for them these last 12 months Arby in my opinion .

Unfortunately true.

[SBRed48]

Barnsley FC shares are high volume, low price shares. Millions of shares are bought and sold in share movements.

In March 2023, the third share issue in the last twelve months, 20,342,500 "A" shares and 6,000,000 "B" shares were valued at 8p each raising £2.1 million.

In the most recent share issue in May 2023 2,878,475 "A" shares and 778,975 "B" shares were traded at the same value of 8p each raising £292,596.

I am still searching for the value of shares at the time of the takeover.

We need to remember that the original Consortium haven't yet paid the Crynes to purchase the club. The Crynes have reduced the price to £3.5 million but are still owed £2.75 million, the first £750,000 being paid from club accounts.