Rangers bid to raise £4m through new share issue and warn: Should it fail then future is uncertain. THE Ibrox club issued a statement to the Stock Exchange this morning stating that funds are needed in the short term - inevitably raising fears they could be plunged back into administration. RANGERS have launched a new share issue to raise nearly £4m - but warn the club is in jeopardy if it’s unsuccessful. The Ibrox outfit announced plans to the Stock Exchange of its “open offer” by making new shares available to existing shareholders. Rangers hope the move will help rebuild the club as a “stable, sustainable and successful business” The statement says the club will benefit from increased attendances and ticket prices if it manages to secure promotion back to the Premiership next season. However it states that in the short term funds are still needed - inevitably raising fears Rangers could be plunged back into administration. We told earlier this month how Rangers had been forced into bid to raise cash from shareholders to fend off financial woes caused by a fans’ boycott of season tickets. Even if the share issue is fully taken up, the statement warns that Rangers “will require external funding in the latter half of the current financial year” - to April 2015. But it adds: “At the minimum level of subscription additional working capital will be required towards the end of the current calendar year” - December 2014. And should the share issue fail, the statement warns, then the “future of the company will be uncertain”. It says: “If the aggregate level of subscription is less than 15,000,000 New Ordinary Shares the Open Offer will not proceed and subscription monies will be returned to applicants. “Should this occur, the Company will be unable to pay its creditors as they fall due and the future of the Company will be uncertain; The Directors will immediately have to seek emergency financing which may or may not be available.” Earlier this week we told how the “big tax case” surrounding the Ibrox club had reopened as HMRC had won the right to appeal .
Posted on: Fri, 29 Aug 2014 09:12:52 +0000
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