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Post by coopboard on May 29, 2021 16:10:07 GMT
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Post by hedleyverity on May 29, 2021 16:23:48 GMT
Is there an accounting/financial reason for money to be put in initially as loans, then converted to share equity?
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Post by redhatter on May 29, 2021 17:33:43 GMT
Is there an accounting/financial reason for money to be put in initially as loans, then converted to share equity? I’m not sure Hedley, but the commitment given by the club to convert loans to equity, every six months is significant and welcome. It is a commitment the Coop will be following closely. I think it is also notable that the Club are investing heavily in the infrastructure to ensure that County can operate on a more sustainable basis. |
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Post by hedleyverity on May 29, 2021 17:45:12 GMT
Is there an accounting/financial reason for money to be put in initially as loans, then converted to share equity? I’m not sure Hedley, but the commitment given by the club to convert loans to equity, every six months is significant and welcome. It is a commitment the Coop will be following closely. I think it is also notable that the Club are investing heavily in the infrastructure to ensure that County can operate on a more sustainable basis. Agreed, very welcome, and also should be followed closely |
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Post by Deleted on May 29, 2021 21:28:10 GMT
They sent Bellis and the kid that does the pre match interviews?
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Post by redhatter on May 29, 2021 21:57:20 GMT
They sent Bellis and the kid that does the pre match interviews? David Ancell, Steve Bellis and Liam Richardson were in attendance from the Club.
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Post by Bredburyhatter on May 29, 2021 22:12:32 GMT
What does a Brand and Communications director job involve?
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Post by coopboard on May 30, 2021 7:48:08 GMT
Is there an accounting/financial reason for money to be put in initially as loans, then converted to share equity? Thanks for the question Hedley.
One reason for putting it in as a loan first is because the business owner doesn`t know how much money is needed in a business and there is no point issuing shares for cash that may be sat around in the business doing nothing.
As far as the situation with County is concerned, the loan , as far as we were advised, followed a relatively normal route to convertion from debt to equity.
As Mr Stott owns all the equity that means a dilution of the individual share value but an increase in share numbers.
The important thing is that the transaction does not increase the debt loaded onto the Club, something to be kept an eye on going forward.
This is something that can be verified when the appropriate accounts get filed at Companies House, so we will be able to monitor what is going on. |
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