Jump to content

 

 

Recommended Posts

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=12066370

 

Open Offer of up to 19,864,918 New Ordinary Shares

 

Further to the announcements on 25 April and 6 August 2014, the Board of Rangers is pleased to announce an Open Offer of up to 19,864,918 new Ordinary Shares at 20p each ("New Ordinary Shares") to raise up to GBP3.97m before expenses. Qualifying Shareholders are entitled to subscribe for New Ordinary Shares on the basis of 0.30185 New Ordinary Shares for each existing Ordinary Share in the Company held on the Record Date. In addition Qualifying Shareholders subscribing for their full entitlement under the Open Offer may also request additional New Ordinary Shares through the Excess Application Facility. The Open Offer is subject to an aggregate minimum subscription of 15,000,000 New Ordinary Shares.

 

The Issue Price of 20 pence per New Ordinary Share represents a discount of approximately 21.6 per cent. to the closing middle market price of 25.5 pence for each existing Ordinary Share in the Company on 28 August 2014.

 

Private Shareholders whose existing ordinary shares are held by a nominee company should get in touch with their custodian to ensure that they are given the opportunity to participate in the Open Offer. A circular (the "Circular") setting out details of and the terms relating to the Open Offer will be posted today and made available on the Company's website, http://www.rangersinternationalfootballclub.com

Link to post
Share on other sites

Rangers admit:

 

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.

Link to post
Share on other sites

Furthermore:

 

Assuming full subscription, the Company will require additional external funding in the latter half of the current financial year in order to meet working capital requirements as a result of the cyclical nature of its business. At the minimum level of subscription additional working capital will be required towards the end of the current calendar year. This funding, could be sourced from lines of credit, other forms of short term finance or as a component of a further equity raise, in line with the strategy identified in the Business Review to re-build and re-establish Rangers as a stable, sustainable and successful business. There can be no certainty that such funding will be available on commercial terms or at all. Failure to secure such funding would be damaging to the business and may impair the value of the Ordinary Shares. The Open Offer is not underwritten. There can be no certainty as to the aggregate level of subscription for New Ordinary Shares.

Link to post
Share on other sites

Desperate times indeed.

 

One can only assume that the 15,000,000 level is something they are reasonably confident of achieving.

 

In essence it would appear that about half of the funds that would be raised is an indirect debt for equity swap in respect of the short term loans and certainly that would be no bad thing in financing terms.

Link to post
Share on other sites
Desperate times indeed.

 

One can only assume that the 15,000,000 level is something they are reasonably confident of achieving.

 

In essence it would appear that about half of the funds that would be raised is an indirect debt for equity swap in respect of the short term loans and certainly that would be no bad thing in financing terms.

 

Difficult to tell with the issue not being underwritten.

 

In any case, we need more funding ahead of next summer.

 

I expect an offer will be made for the club before then. But it's difficult to rule anything out.

Link to post
Share on other sites
Difficult to tell with the issue not being underwritten.

 

In any case, we need more funding ahead of next summer.

 

I expect an offer will be made for the club before then. But it's difficult to rule anything out.

 

At the minimum level of subscription additional working capital will be required towards the end of the current calendar year.

 

As you point out in the quote at #3; but again this is not news it has been known for some time.

Link to post
Share on other sites
As you point out in the quote at #3; but again this is not news it has been known for some time.

 

Yes, of course but that doesn't mean it's a given.

 

If the club can't raise/underwrite £3.97m they won't be able to raise £30m.

 

Will they sell a major holding to secure the club? Or will they remain and keep our future under threat?

Link to post
Share on other sites

It should be noted that this level of subscription would be very small potatoes for the major shareholders, e.g.

 

Laxey - 2,503,229 shares - £500,645

Artemis - 1,653,836 shares - £330,767

River & Mercantile - 1,447,521 shares - £289,504

etc etc

Mike Ashley - 905,550 shares - £181,110

Link to post
Share on other sites
It should be noted that this level of subscription would be very small potatoes for the major shareholders, e.g.

 

Laxey - 2,503,229 shares - £500,645

Artemis - 1,653,836 shares - £330,767

River & Mercantile - 1,447,521 shares - £289,504

etc etc

Mike Ashley - 905,550 shares - £181,110

 

Yes, this level will be.

 

How keen will these people be to fund the club further given the details in the release?

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.