Wrexham Supporters Trust (WST) members have this evening received voting packs detailing the next steps of the proposed takeover bid of Wrexham AFC by The R.R McReynolds Company, LLC.
Notice has been given of an Extraordinary Ballot of the Members to vote on three extraordinary resolutions, which can be seen in full here.
Prior to the voting opening on Monday November 9, 2020 there will be a meeting held via Zoom from 6pm on Sunday November 8 for the following purposes:
- To discuss the Proposed Transaction and the proposed Resolutions required to approve the Proposed Transaction.
- To discuss and consult with the Members on the proposed amendment to the rules as noted in the Resolutions.
- To enable Members to share their views on the proposals
At the meeting a presentation will be given by Rob McElhenney and Ryan Reynolds, where they will outline their vision for the Club followed by questions and answers.
The meeting will be open to members only, and no press access will be granted, in order to allow members to debate each other freely on an important decision in the club’s future.
Voting will then be open from Monday November 9 to Sunday November 15, with the decision announced the following day. For the resolutions to be approved, 75% of members who respond to the ballot must vote in favour.
In the event of an affirmative vote, there are final steps that must then be followed in the takeover process, before The R.R. McReynolds Company, LLC could assume control of Wrexham AFC.
The information pack sent out to members in advance of the vote confirms the terms of the offer from The R.R McReynolds Company, LLC, including that:
- The Buyer will acquire the entire issued share capital of Wrexham AFC Limited for one peppercorn from the WST.
- The Buyer will invest in cash on completion £2 million into Wrexham AFC Limited, in the form of non-redeemable shares. The investment will be utilised for working capital purposes and for investing in the infrastructure, management, players and facilities of WAFC as the Buyer sees fit.
- The new owners of Wrexham AFC Limited will enter into a sub-lease of the Racecourse Ground for a period of 25 years at an annual rent of £115,000 per year. Control of the lease will remain with the WST.
- The Buyer will enter into covenants with WST regarding matters of historically important club heritage during the period the Buyer is the majority owner of WAFC. Whilst the Buyer has no intention of changing any of the following heritage matters, the Buyer will need to obtain the WST's prior consent on the listed matters, before any change is allowable.
Other useful information
The WST Board will be taking a neutral position with regards the offer, in order not to sway the individual considerations of WST Members on what direction they wish the club to go in for the future.
As the offer does not change the ownership of the Racecourse Stadium (by Glyndwr University) or the headline lease (with WST Assets), the WST Board do not see any reason for any change in strategy regarding the Western Gateway Partnership. This includes the redevelopment of the Kop Stand.
In total, 2,108 members (i.e. all those who are not Junior and Youth members) will be eligible to vote in this ballot.
For background information on Wrexham AFC and Wrexham as a town, please see this article prepared for the 156th anniversary of the club’s first match, earlier this month.