Espanyol has announced an Extraordinary Shareholders' Meeting for next June 21 in which, mainly, a capital increase of practically 38 million euros must be approved in which Rastar Group will reverse debt for shares, a surprise news that will give more financial muscle to the parakeet club after its promotion to the highest category and the economic peculiarities caused by COVID-19. This board was approved yesterday at a Council meeting.
As stated in the second point of the agenda, verbatim: “Approval, if applicable, of the Increase in Company Capital of 37,846,788.- € through the issuance of 6,307,798 new shares with a par value of 6 euros each, the consideration of which consists of offsetting credits. Consequent modification of articles 5 and 6 of the Company Bylaws. Delegation of powers to the Board of Directors “.
Likewise, in another of the items on the agenda, a special issue of shares of 190,716 euros is established so that shareholders who so wish can increase their shares at the price of six euros and maintain their percentage. The Board will be telematic due to the still prevailing restrictions on COVID-19, as specified by the entity. This is not Chen's first capital increase at Espanyol, which, apart from liquidating the wild debt that the club had when it bought it in 2016, has endowed it with a higher economic capital.
Espanyol, to square the salary limit on June 30, had to make a sale of around ten million euros effective, as budgeted and advanced at the last meeting. This expansion helps to mitigate all the economic impediments that the entity had the next campaign and that it already announced in public appearances and in the media. It gains more working capital and is approaching the financial 'fair play' set by LaLiga, although that is not synonymous with the fact that Espanyol may already be in a position to sign players.