ijnvestment proposal part 1

22 July 2013 07:06
FPS have their say

FPS would like to point out that they had to let the supporters and shareholders know the facts via social media etc because they have been refused access to give information on the official website. Investment Proposal in Dundee Football Club by Football Partners Scotland ("FPS") 1. Introduction. Following protracted discussions with representatives of the Dundee Football Club ("DFC") Board, the individuals behind the proposed investment into the club now wish to outline their investment proposal in more detail. For the avoidance of doubt FPS is the Keyes family and John Nelms plus existing DFC shareholders Bill Colvin and Steve Martin who together have signed a short partnership agreement to work together to invest in and develop Dundee Football Club. For complete clarity they are all investing their own personal cash, nothing more, nothing less. 2. Details of the proposed investment by Football Partners Scotland. £650,000 will be transferred into the club's bank account immediately on the issuance of DFC shares by the club Board to the FPS members. If a majority of the club's shareholders vote in favour of the investment on 13 August, 100% of the cash will be available in the club's bank account within a few weeks for use by the club Board as they see fit. When we made our original funding offer in May we were very keen to make the cash available to the manager as soon as possible to allow him the opportunity to sign the best possible playing squad. That was our only reason for the timescales we set in our offer letter. The contributors of the £650,000 are as follows: Keyes Capital/John Nelmes. £420,000 Bill Colvin. £180,000 Steve Martin. £50,000 In addition Bill Colvin will surrender his interest paying £100,000 DFC50 Bond in return for shares in the club. Based on an issue price of 1.3417p per share and taking into account existing shareholdings, following the investment FPS will own 56% of the issued club's shares, however the fans group DFCSS will continue to be the largest individual shareholding group in the club. If the Authorised share capital is increased to 200 million shares, there will also be 72.7 million unissued shares in DFC which will be made available for purchase by any interested groups or individuals subject to Board approval. In addition the composition of the club Board will change as outlined in our previous public statement. However the fans will continue to be fully represented with two directors on the club Board as will any other shareholders who buy a meaningful equity stake in the club. FPS wishes to be an inclusive investor in this football club. This total investment and debt for equity swap totaling £750,000 will immediately and significantly improve the club's balance sheet and will move the club into a positive asset position. The latest audited accounts show a deficit of £466,000 at 31 July 2012. The club has negligible tangible assets and has a long, full repairing and insuring, lease liability to rent Dens Park Stadium. Details of this lease are confidential but it is the opinion of the FPS group that capital is required to improve the stadium and to resolve the forthcoming lease issues. 

Source: Dundee Mad