Tigers £13M Investment and Future

Whilst £13M sounds a lot, how long will it last without fundamental change to Income and expenditure ?

A brief excerpt from the Tigers Notice -

Tom Scott has indicated to the Club that he would be willing to invest up to £10.0 million in the Company by
subscribing for up to 50,000,000 Ordinary Shares at £0.20 per Ordinary Share, comprising the Initial Subscription and the
Further Subscription. In addition, Peter Tom has indicated that he would be willing to invest £3.0 million by subscribing for
15,000,000 Ordinary Shares at £0.20 per Ordinary Share in the Initial Subscription. In total the Subscription would provide up
to £13.0 million to the Company. Further details of the Subscription and the intended use of these monies are set out below.
The Board believes that the Subscription is essential to secure the Company’s financial position and to enable the
survival and future success of Leicester Tigers. If the Resolutions are not passed then the proceeds of the
Subscription will not be received by the Company and the Board would have to find urgent alternative funding. There
is no guarantee that such alternative funding will be available or on terms deemed to be acceptable either to the
Directors or to the Company’s creditors. Given the Company’s current and anticipated working capital requirements,
the Directors believe that should the Resolutions not be passed they may have no choice but to appoint
administrators. This will not only negatively impact Shareholders but the Directors believe that Leicester Tigers
could, as a consequence, be expelled from all competitions, including the Premiership, and so the Subscription is
vitally important to the future of the Club.

The Company intends to use the funds raised from the Subscription for the following:

On-going working capital requirements, most notably wages and salaries and related match day and non-match day costs;

Loan and interest payments to creditors; and

Capital expenditure required for future revenue generating projects such as developing a new club superstore and upgrading hospitality units at the stadium.