Vow after AFC Telford shares sale dismay
AFC Telford today pledged to continue seeking new investment for the club after a share issue failed to bring in the cash it had hoped for.
Less than one third of shares put on offer have been taken up, the board revealed. The club had offered 5,000 shares at £100 each in a bid to raise £500,000. In total 139 supporters bought 1,600 shares raising £160,000.
The board today said it was "disappointed" at the take-up and pledged to review actions in the new year.
It said a restriction on no one shareholder being able to buy more than 20 per cent of the club – agreed with the supporters trust when it sold its shares back to the club – had put off two potential investors who were willing to invest "substantial" amounts into the club.
It will now be considering a motion to dispense with the 20 per cent cap. It comes as the board revealed the club incurred a £13,065 loss for the 2015/16 season.
A statement released by the board of directors said: "The percentage uptake of the share offer was 32 per cent.
"No individual shareholder has taken the 20 per cent maximum of the authorised share capital. The board are disappointed that the share offer was only at this level and will be reviewing its actions in the new year. The share offer closing date has not been extended.
"The board were in lengthy discussions with two substantial investors up to the closing date for the share offer.
"Both of those investors are based overseas, but with an upbringing and background from Telford. The club were satisfied that both of those parties wanted to invest in the club for the benefit of the football club.
"One of those investors withdrew because the club had put in a maximum shareholding of 20 per cent of the authorised share capital, the second party was concerned about being a major but minority shareholder."
