LONDON (Alliance News) - Rangers International Football Club PLC said Friday it is looking to raise GBP20 million to GBP30 million in order to undertake a three-year strategy, following a review of its business.
Rangers said that it will consider the "most appropriate source of finance which may be available" including equity and other sources.
However, Rangers noted that it cannot undertake an equity fund-raising as it was not given the required shareholder authority at its annual general meeting in December.
The board of Rangers does have the authority to place 43.4 million new shares to existing shareholders, and said that if season ticket sales were materially less than anticipated it may use this authority to raise capital.
However, it will seek shareholder approval in Autumn to be able to issue additional equity.
Rangers said that supporters will not be able to pay for their season tickets by credit or debit card, as its merchant acquirer has changed its terms.
As a result, season tickets will only be able to pay via bank transfer, cash or cheque, and tickets will not be automatically renewed. Although this will be inconvenient, Rangers said that the merchant acquirer's demands are not in its best interests.
It has extended the season ticket renewal window to May 16 as a result.
Rangers noted that if there was a substantial decrease in season ticket income over the next two months, it would not be able to trade in the short term without seeking additional funding.
Rangers said that its business review had shown it that "many previous decisions were ill thought out, unstructured and in some cases poorly executed."
As a result, it outlined a five-point, three-year strategy that it hopes will "restore Rangers to the top flight of Scottish football and to being competitive in UEFA competition."
The key five parts are developing the performance and capability of its team, focusing on player asset management and youth development, reconnecting with its fan base, developing better commercial and operation capability, and strengthening its commitment to its communities.
Under the plan, it has set itself performance targets.
During the 2014 to 2015 season it aims to build a team and organisation to deliver the SPFL Championship in the first season in the division. During the 2015 to 2016 season it aims to re-establish the club in the SPFL premiership with a top two finish and the ability to challenge for the title.
In the 2016 to 2017 season its target is to be SPFL Premiership Champions, and establishing a platform to be competitive in the UEFA competition in Europe.
The company also said it will restructure its organisation and will adopt a new commercial organisation under a new chief executive.
Shares in Rangers were down 10% at 23.40 pence Friday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @hanassallnews
Copyright 2014 Alliance News Limited. All Rights Reserved.
