Prospectus sums, tax relief and Teenage Cancer

I’ve had an initial read through the prospectus for yet another Newco, this time Rangers International Football Club plc, which “was incorporated with the intention of acquiring RFCL upon Admission in order to allow an investment in the Company to qualify for VCT and EIS tax relief”.

There can be no qualms from HMRC that anything has been hidden from them this time, incorporated to allow an investment to qualify for tax relief.  RFCL (Rangers Football Club Limited) is not eligible for VCT and EIS tax relief, so the incorporation of a new company was necessary.  HMRC provisions require VCT and EIS schemes to be used for genuine trading purposes, not as part of a tax avoidance scheme, so I’m sure the Newco’s lawyers have got all their details correct.

On the subject of getting details correct, the prospectus notes there are 33,415, 200 RFCL shares in issue.  It then goes on to list the shareholdings of entities which own over 3% of the company, and lists 36,385,200 shares in this category.  Shares held by entities with less than 3% of the company’s shares, such as the £700k-basic-per-annum-Ramsdens-Cup-flop McCoist, are on top of this 36million.

The prospectus also notes that if the issue is fully subscribed the new shareholders will own 63.3% of shares, not the 53.6% my calculator suggests (existing shares: 33.4152m, placing: 24.242875m, offer: 14.285714m).

Charlie Green is paying £2.5m for this issue, perhaps the cost of a calculator would have blown the budget.

Most curiously of all, the identity of those behind Blue Pitch Holdings, remains undeclared.

As you should know by now, the year ahead is an enormous one for the club.  Many among the support, and at the club, want to use our 125^th year to reaffirm why we are more than just a football club – we are a humanitarian phenomenon.

You are going to hear a lot about this over the next 12 months but this week you, me and everyone else are called to assist Teenage Cancer Trust and Celtic Charity by supporting a totally unique opportunity.

One of the world’s genuine A-list celebrities is lending his talent to our cause.  Today, Rod Stewart’s new single, Have Yourself a Merry Little Christmas, is released in aid of Celtic Charity and Teenage Cancer Trust.  You can download or buy a CD from Amazon, Play.com or, if you really want to, iTunes.

I want the objectives of the 125 4 125 campaign to succeed.  This is a year when the Celtic Movement can push ahead in a way no other club or group can.  The Rod Stewart brand gives us an opportunity to raise the profile of the larger campaign higher than the combines efforts of thousands of us online. He’s also a genuine, bleed-green fan with Celtic in his heart.

Encourage everyone you know to buy the single and get it as high up the charts this week as possible.  You Have Yourself a Merry Little Christmas now.

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