Share crisis at Ibrox

Shareholders in Rangers International face a worrying day after the value of their investment plunged 15% yesterday finishing the day well below the 50p mark. 

Last week former chairman Malcolm Murray warned about the governance of the club as he left the board and it seems that some big money investors have decided to cash in shares at a loss rather than lose further value.

Murray masterminded the December share issue which apparently raised £22m but with no audited accounts it’s unclear how much was raised or how much remains seven months down the line.

The December listing valued shares at 70p with the value rising to 92p at one stage before profit taking.

Since the end of April the shares have been fairly stable priced at between 55p and 50p before yesterday’s panic which saw £400,000 in shares traded at a price of 42.5p.

No buyer is needed on the AIM with yesterday’s seller offloading their shares to a market maker who buys on the expectation of being able to sell on at a small profit.

If no buyer can be found the market maker will reduce their offered price.

After being sacked from the board last week Murray issued a warning to supporters about the direction that the Third Division champions are moving in.

He said: “You and I want a squeaky-clean club run by men of the highest integrity and global commercial ability and the highest level of transparency.

“The reason we went down the flotation route was to guarantee transparency, whereas ownership by mysterious individuals does not.

“Events of the last year have seen behaviour that would make the late, great Bill Struth spin in his grave.

“The loss of two men (Phil Cartmell and myself) with such lengthy financial public company experience and a quality broker will undoubtedly raise questions amongst our institutional shareholders.

“Only time will tell how they will react. These investors and you are our future and you must be listened to and given transparency.

“We cannot go back to the depths of the last two years, we need to hold course. Corporate transparency is the norm and we should embrace it rather than change course when difficult questions are asked.”

The assets of Rangers were sold to Sevco 5088 before being transferred to Sevco Scotland who were given SFA membership under a secretive five way agreement.

Before the share issue the company name was switched to Rangers International.

Charles Green, Imran Ahmed, Ally McCoist and Craig Mather purchased their shares at 1p with the stock market listing pricing those shares at 70p each.