Today at the victory presser Mr David Cunningham King answered a question about the possible “delisting” of Rangers International Football Club (RIFC).
He stated that actually this was his preferred outcome.
I thought this a strange response because I had thought that having a share issue was part of the Grand Plan.
Silly of me.
However, a cynic might conclude that this is a clear sign that some NOMADs are saying that they do not want the RIFC gig.
When WH Ireland resigned that started a 30 day clock to get a replacement.
Two days later, no progress. Of course if RIFC do not get a Nomad then they will be kicked off the AIM.
That means their shares can’t be publicly traded.
Privately traded shares are worth a much smaller amount than publicly traded ones just by virtue of the ease of selling. If that happens then the case could be made for King’s criminal history will cost RIFC shareholders money. With no way to sell shares publicly, private contracts will be required, but who will buy such shares? They will become close to worthless.
However I am sure that this is all part of the Grand Plan.
Publicly traded firms go public in the first place to get access to capital markets for debt and equity. Being delisted eliminates the option for a public share offering.
In fact, wasn’t a share offering one of Mr King’s stated goals?
RIFC is a loss making business without a credit line from a bank.
Mr King has said that they club/company/celestial entity requires investment immediately.
How is this to be funded?
Well you can forget the debt markets anyway because everything that can be secured already is secured by Big Mike.
Therefore they cannot get any more secured loans.
So that means no access to secured debt and no access to public share offerings.
That would mean that their only source of funding, if delisted, would be private placements.
Who would buy shares in a loss making company where you have no way to tell what the shares are worth?
No listing means there is no marketplace to tell you what someone will pay.
However I doubt this will mean anything to The People as these financial matters always seem to be beyond them.
For the rest of us it is difficult to see how this new regime will fund Sevco going forward.
I must say this Grand Plan is intriguing.