Frankie 8,663 Posted August 6, 2014 Share Posted August 6, 2014 http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=12043401 Looks like the £5m button isn't as easy to press as they think... Further to the announcement of 25 April 2014, the Board of Rangers announces that the Company is considering a possible equity issue in which all existing shareholders would be eligible to participate. Support is being sought from institutional investors to underwrite the possible equity issue. Discussions are ongoing and there can be no certainty of the outcome of these discussions. In line with the exemption to the European Union Prospectus Directive the possible equity issue would be for not more than an aggregate EUR5m and would avoid the costs of preparing a prospectus. The Company does not currently have shareholder authority to issue shares on a non pre-emptive basis and authority from shareholders to do so, which would allow placements of shares with institutional investors, will be sought at the Company's AGM later this year, in line with the Company's stated strategy. Further announcements will be made in due course. 0 Quote Link to post Share on other sites More sharing options...
Little General 80 Posted August 6, 2014 Share Posted August 6, 2014 How long will that last? will it see us through the season? seems unlikely. 0 Quote Link to post Share on other sites More sharing options...
Little General 80 Posted August 6, 2014 Share Posted August 6, 2014 5m euros works out at £3.97m 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,663 Posted August 6, 2014 Author Share Posted August 6, 2014 How long will that last? will it see us through the season? seems unlikely. Will last us until the next issue as per the wording in the final paragraph of the statement. 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,663 Posted August 6, 2014 Author Share Posted August 6, 2014 I guess the important part is who is doing the underwriting? Laxey or someone new...? 0 Quote Link to post Share on other sites More sharing options...
chilledbear 16 Posted August 6, 2014 Share Posted August 6, 2014 http://www.bbc.co.uk/sport/0/football/28678687?utm_source=twitterfeed&utm_medium=twitter Rangers are facing a fresh financial crisis after failing to convince city investors to sign up to a new share issue, BBC Sport has learned. The club issued a document to potential and existing investors with a view to raising up to £10m through an investment plan by the end of August. However, they have so far failed to get the uptake they were looking for. Investors were asked to buy in at around 25p per share - the current price is around 30p a share. The presentation document, aimed at selling a stake in Rangers, highlights plans for the club to be financially sustainable by the end of season 2015-2016 through restructuring the business in a strategic three-year plan. The paper also mentions "the significant revenue opportunity" that would come with the club being back at the top of Scottish football, and points towards potential revenue streams that would follow from competing in the Champions League. A timetable of events within the document promises to reveal details on 25 July - but that deadline has now passed due to the lack of interest. It was always the board's intention to raise more cash through a new share issue but it is understood the lukewarm response is causing concern at boardroom level. As part of his 120-day review published in April, chief executive Graham Wallace said he would look at a new rights issue later in the year "when the climate will be better for us". It now seems the board may have misjudged the mood in the city regarding Rangers as a business proposition. The club's finances have been under the spotlight for some time and earlier this year the club secured short-term loans totalling £1.5m from shareholders Sandy Easdale and George Letham. Those loans must be paid back by the end of August but questions are now being asked about the club's ability to meet that deadline. The situation is reaching a critical stage as fans continue to vote with their feet and their wallets. Supporters remain split over their backing of the board and it is understood less than 20,000 season tickets have been sold, compared to the 38,000 sold last year - figures that are adding further strain on finances. The board will now pursue fund-raising alternatives, one option is to secure a new loan and launch a smaller share issue aimed at raising around £4m by the end of the year. 0 Quote Link to post Share on other sites More sharing options...
buster. 5,257 Posted August 6, 2014 Share Posted August 6, 2014 From the Business Review....25/04/14 "In order to achieve the strategy identified below, the Company will need to raise capital. The Board has determined that over the next three years it expects to raise between £20 million and £30 million to be invested in the Club. The Board will consider the most appropriate source of finance which may be available to the Club including equity and other sources in order to obtain the necessary funding whilst also seeking to ensure the Club’s financial stability is protected.............. ......The authority given to the Board at the AGM in December 2013 to enable the Company to allot up to 43,400,000 new ordinary shares of 1p each in the capital of the Company on a pre-emptive basis to existing shareholders has not been exercised to date. In the event that season ticket sales over the forthcoming weeks are materially less than anticipated then the Company may seek to use this pre-emptive authority which can offer a cost effective and efficient method of raising capital. To implement the initial phase of the three year plan set out below, the Board intends to seek shareholder approval in Autumn 2014 for the issue of additional equity pursuant to Section 551 of the Companies Act 2006." http://www.rangers.co.uk/images/staticcontent/documents/RangersBusinessReview.pdf ------------------------------------------------------------------------------ So how many of the 43.4M shares (less the Stockbridge slice / 120 days obviously not enough to find out about the BS clause) equate to 5M Euros ? If the board are struggling to convince investors over 5M, do they realistically hope to achieve stated objectives ? Graham 'Empty Corporate Speak' Wallace still talking about robust finances ? Other directors still talking about pushing buttons for XM ? Certain Bloggers still on about 50M from BPH ? 0 Quote Link to post Share on other sites More sharing options...
Waltersgotstyle 307 Posted August 6, 2014 Share Posted August 6, 2014 Where is Dave King? 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,808 Posted August 6, 2014 Share Posted August 6, 2014 I assume - despite the BBC's obvious negative slant on the matter - that the board wants to bridge the gap in ST sales, hoping that the pay at the gate figures bring crowds up to last year's figures. Keeping this issue as low as it is could mean, as Frankie suggests, that they spare themselves the cost of a prospectus and the chance of another issue if one is needed early next year. Such kind of action was always in the pipeline since the AGM, so nothing we haven't discussed before. It remains to be seen whether the company will be granted a "real" share issue for all people interested later on, including the quiet man in shadows. 0 Quote Link to post Share on other sites More sharing options...
buster. 5,257 Posted August 6, 2014 Share Posted August 6, 2014 I assume - despite the BBC's obvious negative slant on the matter - that the board wants to bridge the gap in ST sales, hoping that the pay at the gate figures bring crowds up to last year's figures. Keeping this issue as low as it is could mean, as Frankie suggests, that they spare themselves the cost of a prospectus and the chance of another issue if one is needed early next year. Such kind of action was always in the pipeline since the AGM, so nothing we haven't discussed before. It remains to be seen whether the company will be granted a "real" share issue for all people interested later on, including the quiet man in shadows. Nowt wrong then, it's only the bad ole BBC spinning a line. 0 Quote Link to post Share on other sites More sharing options...
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