LONDON (Alliance News) - Rangers International Football Club PLC Wednesday said it is considering a possible equity issue, of no more than EUR5 million, in which all its existing shareholders will be eligible to participate.
Rangers FC has been troubled in recent years, going into administration in 2012 and falling into the third tier of the Scottish Professional Football League.
In June, Rangers said its need for short-term financing had been reduced after it received 17,000 renewals of season tickets ahead of the next football season, even though it had raised ticket prices.
The Scottish football club had said in April that it was looking to raise GBP20 million to GBP30 million to cover its three-year plan, but that it would need new shareholder approval to raise that level of cash by issuing equity. It currently only has authority to issue 43.4 million shares, which at its current share price would only raise GBP13.9 million, but had said in April that it may use this if season ticket sales fell too far below hopes.
Rangers Wednesday said it does not currently have shareholder authority to issue shares on a non pre-emptive basis. Authority from shareholders to do so, which would allow placements of shares with institutional investors, will be sought at the company's annual general meeting later this year.
The stock was quoted 1.2% at 31.125 pence
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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