Sevco are in crisis tonight after shareholders rejected an AGM resolution allowing directors to sell shares to anyone they feel dignified enough to venture into the blue room.
To pass the resolution the club required to get the approval of 75% of the votes cast but could only muster 74.6%. The news was leaked this morning with former manager Ally McCoist blamed for the result. With a 1.25% stake in the tribute act Coisty was named as one of the 28.5% of shareholders that didn’t vote.
The resolution was opposed by Mike Ashley and the Easdale block vote.
Dave King had planned to use the resolution to convert £14m of soft loans into equity but with a loss making company without an overdraft or NOMAD it’s difficult to see how that cunning plan could have been carried out.
The Sevco board can issue fresh shares to existing shareholders but with the 2012 issue pricing shares at 70p and recent trading quoted at 20p there isn’t likely to be much of an appetite for fresh funds from fans who’ve already been stung.
McCoist bought his 1.25% holding in the company for a penny a share alongside founding fathers Charles Green and Mike Ashley.
Manager Mark Warburton is a former city trader.