David Low, who failed in his bid to buy Hibs last year, has warned fans against being "gullible" as he added his backing to claims that those purchasing shares have no real prospect of taking ownership of the club.
The financial adviser, who played a significant role in initiating Fergus McCann's rescue of Celtic 20 years ago, returned to the football scene in fronting a consortium which lodged a failed bid to buy the Edinburgh club from Sir Tom Farmer amid widespread hostility among supporters towards the club's board, in particular chairman Rod Petrie, following their relegation from the Premiership.
As he published a statement on the current situation Low said he was not making any sort of attempt to revive his bid, explaining he was merely keen to ensure that supporters ask four key questions in particular regarding:
Why no financial information has been provided in respect of current trading?
Why the club's retail business was outsourced and to whom?
Why no details have been provided regarding the club's new loan arrangements after it got rid of its bank debt?
Why the club's existing Articles of Association restricts the sale of shares by shareholders?
Read David Low's statement in full
Explaining why he had spoken out now, and in this way, Low told Herald Sport: "I've been approached by a lot of Hibs supporters, some of whom are existing shareholders, asking for my view. My basic view is that I think the Hibs shares are worthless because of the level of debt they're carrying. It doesn't matter who that is to, it is still debt.
"Football clubs are not worth what they were. They have to live within their means now. There is very little money to be made or lost which is a difficult situation if you are an existing owner of a club who invested at higher values.
"My opinion is that this share issue is going to be a flop. The board has said as much, that it's not going to be a good investment and that you really have to be buying shares for another reasons.
"These shares are over-valued and I don't believe Hibs fans will put up £2.5 million. I think it is likelier to be nearer half a million pounds that is raised which would mean they own something that is worthless and the club would still be controlled by Tom Farmer and Rod Petrie.
"The gullible will buy shares and end up in a minority, so the board will be taking money from fans without relinquishing control.
"Hibs fans should be asking all the questions Rangers supporters are now asking, such as who the retail business was out-sourced to. Is that Mike Ashley? Who has the security of the club's assets and on what terms.
"I have no end game here. I made my pitch and it was rejected. I accept that. I'm out. I have valued the shares at zero. They are entitled to their view just as I'm entitled to my view."
Low's comments came in the wake of criticism of the plans by supporters groups "Hands on Hibs" and "Buy Hibs" which apparently prompted Leeann Dempster, the club's chief executive - also a director of the newly-formed Hibernian Supporters Ltd, the vehicle through which fans are being invited to invest and buy shares - to issue a heartfelt plea to supporters to get behind this share issue on the club's website in midweek.
In it she reiterated that the club was setting out on this project from a strong financial foundation. However, Mike Riley, chairman of the Hibernian Supporters Association, echoed Low as he advised supporters not to invest.
"This is not community ownership," he said. "The proposals are basically calling on fans to make a donation to the multi-millionaire club owner.
"Despite plans for a new company Hibernian Supporters Limited, the fans will still not own the club or be running it. Overall control will remain with the majority shareholder and the current board."
Riley stressed that he was speaking in a personal capacity at this stage, but said he was keen to collate the views of all HSA members as analysis of what is being offered continues.
"So far I've only heard from branches who are against it, but there may be others who might not agree. Therefore we will be calling a meeting for all branches of the Hibs Supporters Association to discuss it after the club's agm next week," he said.
"I, myself, would advise fans not to put money in but I have made it clear these are my personal views as chairman.
"We are studying the club accounts and would like more information on the majority shareholder's debt or loan and how and why he wants a reported figure of £5m paid back."
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