British sportswear retailer JJB Sports has announced that it would go on with its plan to raise £100 million via rights issue.

JJB Sports said it would issue 400,000,000 new ordinary shares at a price of 25p-a-share.

It may be noted here that last Friday the £100 million fund raising plan was postponed to probe false claims of illegal payments to executive chairman Sir David Jones.

JJB Sports said that it was very concerned by the nature of those rumors and thus passed on the inquiry to the Financial Services Authority.

The groundless rumors claimed that Ms. Sharpe, the daughter of former JJB Sport’s CEO, had made payment into Sir David Jones’ account.

The company said in a statement that the rumors were found to be totally baseless.

Two major shareholders had removed support from the rights issue due to the prevalent rumors.

Sir David Jones, JJB executive chairman, said, “This capital raising represents a new beginning for JJB Sports.”

The announcement pushed the JJB shares up by 2p to 34.75p.