Rangers said the price represents a 22% discount on its closing price of
It went into administration under the weight of a large debt burden and as the tax man claimed back money it said was owed for a large number of years due to undisclosed payments made to players.
Rangers is looking to raise between
In February, it secured two short-term credit facilities for a total of
If the level of subscription is less than 15 million new shares, the offer will not proceed, Rangers said. It said that if this happens, it will be unable to pay its creditors as debts fall due, meaning it will immediately have to seek emergency financing.
The open offer of shares is not underwritten, it said.
Assuming full subscription for the open offer, it said it still will require additional external funding in the latter half of the current financial year to meet working capital requirements. At the minimum level of subscription, it will require additional working capital towards the end of the current calendar year, the company said.
This funding could be sourced from lines of credit or other forms of short-term finance, or as a component of a further equity raise, Rangers said.
Rangers is competing in the Scottish Championship, the second tier of the
It has increased most of its season ticket and match-day prices for the 2014/15 season by between 15% and 25%, it said, and has sold around 23,000 season tickets.
The company said that if it continues to progress to the top flight of Scottish football it can benefit from increased ticket prices, prize monies from European competition and new commercial partnerships.
Rangers said trading since its interim results has been in line with expectations. It had an unaudited cash balance of
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