Chairman David Sheepshanks has confirmed that a second share issue will take place this summer. TWTD reported two weeks ago that larger shareholders had been contacted by the club regarding investing in the club ahead of 2006/07.

Town will officially launch the scheme next week with an EGM pencilled in for May. In addition to the letter to larger shareholders, the club has held meetings with groups of shareholders over the last few months to discuss the issue.

Sheepshanks has reiterated that funds from the new issue of shares will go towards strengthening the squad ahead of a big promotion push next season: “The premise of this share issue is utterly different to the last time. This time it is from a position of comparative strength. Whatever funds are raised will go straight into the team.

“If it is £100,000, if it is £1m or £32m, whatever, it will go into the team in the form of new players, possible transfer fees and wages."

The letter to large shareholders outlined two share schemes, the first involving new investment from 100 of the larger shareholders, with the second giving all 3,300 existing shareholders a chance to increase their investment in the club up to €2.5 million (£1.75 million), the point at which under law the club would have to go to the vast expense of producing and distributing a prospectus.

A third option, which could run along with either of the other two, is the issue of further convertible loan notes up to the value of £600,000 at an interest rate of 7%.

Town's financial position has improved significantly in recent months with chief executive Derek Bowden renegotiating the terms of the club's debts to its three main lenders (Norwich Union, Barclays and the Bank of Scotland). The agreement involves a virtual interest holiday for the next two seasons which will save the club £2 million a year.

Meanwhile, Sheepshanks says that Joe Royle will be stay at Portman Road beyond June 2007 and the end of his current contract should the Blues make the Premiership: "If we are promoted next season then Joe has a clause which gives him an extension of another year.

"Our ambition is for a two-year concerted promotion drive. If we are promoted in the first year with Joe, then fantastic - he will get an automatic extension. If we are not promoted in the first year the position will be reviewed. But there will be no review until then."

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