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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