Rochdale Hornets are to issue £1 million worth of new shares as they look to wipe out the club's existing debts and build a secure future.

At a meeting of the club's shareholders on Thursday night, it was confirmed that the club is between £150,000 and £175,000 in debt.

But the shareholders voted for a new share issue, rather than other financial measures, and have targeted raising £500,000.

"There was a grim determination at the meeting to maintain the history of Rochdale Hornets and the company," chief executive Paul Reynolds said.

"Due to financial problems, a lot of clubs have opted to go into liquidation, a CVA or administration.

"But the shareholders wanted to maintain the unbroken history of the club that dates back to 1871.

"The debt is between £150,000 and £175,000. It is not monumental, because we are not a big club. But it needs to be serviced.

"Everyone at the meeting was very positive in their attitude. We will issue two million shares of 50 pence each, and in the initial round we hope that one million of those shares will be taken up.

"That would raise £500,000, see off our current debt, and at the very minimum allow us to balance the books for the next three years.

"In that time, we will look into other ways of raising cash."

The new shares will be sold in minimum blocks of 400, meaning investors must pledge at least £200, and Reynolds has already reported a decent response.

"It was felt by shareholders that the days of buying one and two shares were gone, and that the club needed to modernise," Reynolds said.

"We are confident from the meeting that there will certainly be a large take up of new shares by existing shareholders.

"Now it is up to the public to come forward and take up the remainder."

The club's accountants and solicitors are now drawing up the necessary paperwork, and a further meeting is expected in around four weeks' time to give a formal approval of the issue.