Fears over the future of Sevco have increased with the share price crashing below 20p today.
Last week the cash strapped club managed to raise £3.13m, before costs, with shares offered to existing shareholders at 20p each.
When the share issue was launched on August 29 shares were trading at 25p giving shareholders a 20% discount on the then market price.
With the price now at 19p per share those investors are committed to paying over the market rate for shares which are likely to drop further with more shares released and no increase in the value of the company. Just after 2pm today over 5,000 shares were sold at 18.9p each, a week ago those shares were costing 25p.
Since the announcement about new shares going on the market the club has been on the receiving end of a stream of bad news certain to concern existing investors.
News that the naming rights to the stadium had been sold for £1 shocked supporters and cut off a future revenue stream. In recent times figures ranging upto £2m had been put on the value of renaming the stadium but after two years Sports Direct have shown no interest in being so openly associated with the club.
The re-emergence of Rafat Rizvi last week didn’t go down well with blue chip investors with the moneyman turning up at Murray Park to discuss youth development initiatives with former VAT convict Mr Sandy Easdale.
Being linked with Sevco and Rizvi caused alarm bells to ring in Malaysia with Datuk Faizoull Bin Ahmad, chairman of Felda United, forced to issue a statement defending the honour of his club.
Bin Ahmad said: “I have no idea who Rafat Rizvi is. He somehow wound up together with me and the media picked it up claiming that I know him. The report claiming I know Rizvi is false.”
Despite Sevco’s warning about needing further finance before Christmas and the involvement of Rizvi the SFA and SPFL have yet to make any comment on the growing crisis at Ibrox as they brace themselves for a second Armageddon.