Rangers shareholders Club 1872 are asking members to vote on a 2.5m share purchase that will see the fan-led group invest £500k into Rangers and become the 4th largest shareholder.
The share purchase proposal comes not long after Rangers generated £7m by launching 35m new shares in Rangers at the start of October.
According to Price of Football’s Kieran Maguire, this was likely the transfer of debt into shares rather the generation of new cash.
The knock-on effect this has had on the likes of Club 1872 is that it has diluted their shares in Rangers.
The group is widely considered a positive influence on Rangers and something which ensures that through trusted voices, can protect the wider interests of Rangers Football Club and the support.
They are seeking member approval in order for the motion to buy the shares to pass, with the £500k going to Rangers as a direct result.
The deadline for the vote will be midnight on the 2nd of November 2019.
In an email to members, Club 1872 said [as quoted by Evening Times]:
“The Club 1872 board is pleased to inform members that we have the opportunity to purchase a further 2.5 million shares in RIFC, from the company, at a price of 20p per share – the same terms as the recent conversions of soft loans by other investors.
“This purchase will cost £500,000 with all funds going into Rangers. Available funds from Club 1872 Shares CIC can be committed for this purpose by the Club 1872 board but in order to purchase the full share allocation, a poll of members is required for the use of funds from Club 1872 Projects CIC.
“Members are asked to vote below on whether they authorise £235,000 of funds from Club 1872 Projects CIC being used to purchase 1,175,000 shares in RIFC to be held by Club 1872 Projects CIC. If the vote passes, this will mean that the combined Club 1872 shareholding will rise to 16,202,838 shares in RIFC representing 6.47% of the company. This will move Club 1872 from the 6th to the 4th largest shareholder in RIFC and increase our current percentage shareholding by 1%.
“This poll will close on 2nd November 2019 at midnight.”
