Official site: Intention To Float On AIM

[amms 0]

Is the £20M not just for 50%?

 

I hadn't realised that, so we're worth £40 million now? That seems even less likely.

[simplythebest 0]

Aye if my Granny hid baws and all that.

 

Hardly impossible, even if we need to get a new manager to do it.

[amms 0]

"Ship of Theseus" is an interesting headline to use on that FT blog, suggests a certain viewpoint.

[simplythebest 0]

CHARLES GREEN insists Rangers aren’t reliant on a successful share issue to achieve their long-term ambitions.

 

The Light Blues chief executive admits it would allow the 54-times Scottish champions to achieve things quicker but maintains they aren’t depending on the cash they hope to generate.

 

Gers today announced their intentions to seek admission to the AIM market of the London Stock Exchange.

 

In turn, they hope that will allow them to raise working capital amounting up to as much as £20million.

 

Supporters will have an opportunity to invest and Green has helped the club go into the proposed floatation in a healthy financial position.

 

He believes that will only make the Ibrox outfit stronger and that the cash will assist them further rather than simply keep it on its feet.

 

Green said: “Let’s be honest about it, the reality is that this year was always going to be a challenge.

 

“The minute we were put into the Third Division, in my position as CEO I should probably have made 20 to 25 per cent of the staff redundant.

 

“We didn’t and as a board and an investment team we wanted to keep the management team intact. We’ve got fantastic staff and fantastic loyalty along with great knowledge and skillsets.

 

“If you believe, as we do, that Rangers over the next couple of years will go back into the top flights of football in Scotland and Europe, it’s important we keep that team around us.

 

“I suppose this year, financially speaking, is a difficult year for us. It’s a start-up year and we’ve got lots of exceptional costs.

 

“But the model we have – and you’ll see that when the documentation comes out – shows that Rangers, even in the Third Division, can generate profit and is sustainable.

 

“The reality is this money isn’t required to keep Rangers afloat as we’ve taken merchandise back in house, we’re looking for more sponsorship and maybe naming rights for the stadium.

 

“These are all things I’ve spoken about before and they will secure Rangers’ future. Because we’re developing things such as Edmiston House, we’ll get better revenues.

 

“We’re trying to work with Glasgow City Council and the housing association to try to reignite the property development outwith the stadium.

 

“There are lots of things we have on the table that will make sure Rangers can generate income and will be self-sustaining. This fundraising will just make it happen much quicker.

 

“I couldn’t see that Rangers would ever have a future like they have now. We have cash in the bank ahead of this fundraising and we are completely debt-free with no borrowings.

 

“This will only make our position much more secure and we will be able to generate higher revenues and higher incomes to build something really sustainable for the future.”

http://rangers.co.uk/news/headlines/item/2406-future-not-dependent-on-shares

[bigy 0]

I don't think he's said what the £20m is for!! It's certainly not clear at the very least.

[Bluedell 5,348]

I hadn't realised that, so we're worth £40 million now? That seems even less likely.

 

Not necessarily.

 

A simplistic example to explain is that imagine a company breaks even every year and has net assets of £5m then it would be worth £5m. If it then had a share issue and raised £20m, it would then have net assets of £25m, and could be worth £25m. The amount raised by the share issue does not have a impact on the pre-issue valuation of the company.

[simplythebest 0]

I don't think he's said what the £20m is for!! It's certainly not clear at the very least.

 

Money can go in the bank, I doubt we're going to get a detailed sheet of where ever single penny goes.

[forlanssister 3,050]

"Ship of Theseus" is an interesting headline to use on that FT blog, suggests a certain viewpoint.

 

Indeed and if you look at the comments on the blog you'll see where it came from, I suppose the FT is a bit too up itself to have "Trigger's Broom" as a headline.

[der Berliner 3,263]

I don't think he's said what the £20m is for!! It's certainly not clear at the very least.

 

The OP's linked article says:

Rangers intends to raise up to £20million through an institutional investor placing and limited public offering. The funds raised will be used for strengthening the player squad, improving and developing the Club’s properties and facilities, as well as providing additional working capital. It is anticipated that Admission will become effective before the end of the year.

 

Since this comes from the club's HP, it is official enough, I assume.

[bigy 0]

Money can go in the bank, I doubt we're going to get a detailed sheet of where ever single penny goes.

 

Sorry, I meant I don't think he's said what % of the club the £20m is for, hence he's not stated what they value the club at.