Quakers: £750,000 needed by April 30, here’s how... (From The Northern Echo)

Quakers: £750,000 needed by April 30, here’s how...

10:04am Thursday 16th February 2012 in Darlington By Joe Willis, Regional chief reporter

TIME TO ACT: Administrator Harvey Madden gives a press conference on the latest developments regarding Darlington FC

Fans’ groups, businesses and individuals will be able to buy shares in a new company set up to buy Darlington Football Club from today. Joe Willis looks at how the ownership model will work.

• DARLINGTON FC 1883 Ltd has signed an agreement with administrator Harvey Madden giving it a period of exclusivity to raise enough money to buy the club. It aims to do this by selling shares in the company for £100 each.

• A new website – buydarlo.org – is due to go live this morning where fans can purchase shares.

• An initial batch of 5,000 shares has been released.

These will be initially available in a two-for-one deal, meaning you buy one share for £100 and get a second free. Once these have been sold and £250,000 raised, it is hoped the company will be in a position to buy the club.

• A second batch of 2,500 shares would then be released.

Once these have been sold and a further £250,000 raised, fans believe the company will have enough money to pay off the remaining creditors and prevent the club from being relegated.

• A third batch of 2,500 shares would then be released, which, when sold, it is hoped would give the club a sustainable future.

• Investors in the second and third stages will receive one share for £100 – total of 10,000 shares will be issued.

£70,000 has already been raised towards the £750,000 total, which has been given to the administrator in return for the exclusive rights to buy the club.

• If the targets for each phase are not achieved, the cash in that phase would be offered back to investors.

• Individuals, groups and businesses will be limited to owning 15 per cent of the business.

• An interim board of directors of the company is being set up. However, elections for the board are scheduled to be held in the summer and periodically thereafter.

• Shareholders will be given a vote on the basis of one share, one vote.

• Money invested in shares will be held by a firm of solicitors until Darlington FC 1883 is ready to buy the club.