RANGERS are expected to launch an £8 million share issue within "a few weeks".

The development came after members of the Ibrox board met institutional investors in London yesterday. It is thought the new issue will take place before the end of August.

Rangers International Football Club plc is seeking new investment following the decision by thousands of fans to hold off renewing their season tickets.

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Earlier this year, the League One champions were forced to take a £1.5m working capital loan from football club chairman Sandy Easdale and wealthy supporter George Letham to avert another financial disaster.

These loans were expected to be paid off as soon as enough money had been raised from season ticket sales. Alternatively, repayments can come from a new fund-raising share issue.

Former Rangers director Dave King indicated last month he was willing to be a significant investor and suggested a brand new rights issue in his favour, but ruled out buying existing shares in RIFC plc.

After talks with RIFC board representatives, Mr King, along with legendary former player Richard Gough, set up Ibrox 1972 Ltd as part of a fan campaign to withhold season-ticket cash.

Mr Easdale, a non-­executive director on the RIFC plc board, who has control over 26 per cent of the company, flew to London for talks with major existing shareholders including Laxey Partners, Blue Pitch Holdings and Margarita Holdings.

A source close to the discussions said: "I would expect the club to press ahead with the share issue within a few weeks.

"It's unlikely there will be many shares left over for anyone, even Dave King, to purchase. Under stock exchange rules, the existing shareholders get first 'dibs' on the new shares.

"Sandy has the full backing of the investors like Laxey, Blue Pitch and Margarita so it's fair to assume they will take up their options."

Neither the club or Rangers International Football Club plc would comment.