Dave King’s latest share plan will cost him an extra £4.8m if he ever gets around to complying with the ruling from the Takeover Appeal Panel, backed by the Court of Session.
With no investor prepared to be tarnished through association with the South African based criminal there is no new ‘investment’ coming into Sevco despite a weekend of frenzied speculation aimed at shifting season tickets.
On Monday King sat down with invited reporters and claimed that he would raise £6m from a rights issue with the cash coming in next month.
In the incredibly unlikely event of King finding a NOMAD to create the new shares coupled with the even less likely prospect of anyone buying the worthless stock there will be another little problem at the end of this cunning plan.
As the John James site points out King would then have to place 20p per share in an escrow account to comply with the ruling of the Takeover Appeal Board!
In order to bring in £6m the South African based convict would have to issue 24m shares at a ‘discounted’ price of 25p. King claims the true value of shares is 27.5p with the in-house fans group Club 1872 paying Mike Ashley at that price for his shareholding.
King stated clearly on Monday that he has no intention of complying with the TAP ruling, not that he would ever get close to publishing a prospectus.
Having had their regulations publicly trashed the TAP are expected to step up their actions against King although it’s unlikely that the SFA will take any steps to support the troubled company from Ibrox.