Well news broke in the last few hours that Club 1872 have purchased more Shares from former Director Dave King.
Admirable in one sense that they have managed to stump up 450,000 Of Her Majesty’s quintessentially British Pounds in a time of great upheaval and uncertainty in the World.
Dave King has managed also pull a miracle off in getting a respectable 20pence a pop for Shares which to be brutally honest are losing money with every Share Issue that’s Issues from within the Financial Joke that is Rangers Finances Department.
The aim you see was always that Club 1872 would retain a solid grasp on where The Rangers were heading.
Unfortunately for them though every time a new Debt for Equity swap happens any ground gained by increasing that shareholding is Automatically diluted again by the Share Issue.
Since the 15 th of October 2018 alone there has been no less than 21 separate Share Issues up to the latest on the 22nd February this Year which in total has diluted the Share pool by over £67m in that time.
That £500k worth of shares is basically the equivalent of adding three drops of red ,white and blue dye to an Olympic sized swimming pool and expecting it to resemble a Union Jack.
January 5, 2021
Club 1872 is pleased to announce our first share purchase under the agreement recently announced with Dave King. This first purchase of 1,250,000 shares takes the Club 1872 shareholding to 5.12% – securing a crucial 5% shareholding again
April 12, 2022
Club 1872 is pleased to announce the purchase of a further 2,250,000 shares in RIFC Plc, taking our total shareholding to 22,202,838. This represents 5.13% of the total issued share capital of RIFC Plc and returns Club 1872 to the position of 6th largest shareholder.
The shares were purchased for 20p per share at a total cost of £450,000 from New Oasis Asset Limited (Dave King’s family trust). This price represents a 20% discount on the most recent share issue of RIFC Plc.
To put this into context…
The last Debt for Equity swap (22nd Feb 2022) was £4,323,286.33
Another which could well be due any day soon will render this latest acquisition from King pointless.
There is really only one winner in this and it isn’t the well meaning members of Club 1872.
One can only imagine what is in it for those encouraging Supporters to buy yet more Shares in a Share pool that is diluted almost on an almost predictable basis.
No Champions League revenue would for example require some serious belt tightening in the Summer and also a fire sale in order to reduce costs which presently are far exceeding any income.
A Compnay that has failed to turn a single penny in profit in almost 10 years but has rather lost over £107m whilst simultaneously writing off a further £67m in Share Issues is not really a safe bet long term.
Whilst it is Admirable these Supporters wish to further their own grip on what is occurring at Ayebrokes it might be best that they and Club 1872 get a grip on reality first before doing so.
My advice would be to keep stockpiling the cash until the day comes (as it surely will the way they are currently operating) when the share price hits rock bottom and those still involved finally bail out.
Get more bang for their buck if you like.
Either way this doesn’t end well for them or The Rangers Fc.
Dave King knows this all too well and hence why he’s hoping to offload to Club 1872 before any further Dilution(s) to his Holdings.
