Hearts plot audacious rights issue to raise $6.2m

Hearts of Oak are planning another rights issue with the aim of raising GHc 30m (US$6.2).

The club in its 2016/17 Annual Report and Financial statement says it needs the requisite investment capital to undertake major operations in order for it to modernize and be profitable in the long run.

Hearts plan to use majority of the funds to be realized from rights issue to fund their sports complex project at Pobiman.

This will be the second time the Ghanaian giants are aiming to raise money through a rights issue.

Their first one almost a decade ago failed to achieve the target of raising GHc 10m as a only a reported GHc 2.5m which saw the emergence of Togbe Afede XIV as the majority shareholder was realized.

But the club is confident the environment is now conducive for them to raise an audacious GHc 30m despite the failure of the club to win any major silverware over the past decade.

“We must take advantage of this ‘moment in time’ while it is upon us,” a portion of the annual statement read.

“In the short term, this will require investment capital. As such the Board will explore a new rights issue (target of GHc 30m) to raise the necessary funding as well as provide additional opportunities for supporters to take ownership stakes in their beloved club.”

The current board will be seeking the mandate of its shareholders to proceed with their plans for the rights issue when they converge for their Annual General Meeting on August 15.