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Definately Hold, and possibly BUY if confident enough!
They're covered till the end of August.... bottom draw or bail as there won't be much positive action till then (if any)
Neither good nor bad, basically we need to get flights going at the end of this month or it’s game over.....I have a feeling as we are essential to tourism the consortium will come up with the readies.
As at 30 June 2020, the Group had cash reserves of US$1.0 million with no restricted cash. Of the Group's US$1.0 million cash reserves, US$0.1 million is in Zimbabwe and currently unrestricted.
Currently digesting. It.
3 July 2020
fastjet, the low-cost African airline, today provides an update to the market and shareholders.
On 7 April 2020 the Company announced that, following the country-wide lockdowns in South Africa and Zimbabwe due to the coronavirus ("COVID-19") outbreak, it had suspended flight operations. Following extensions to the lockdowns in both countries the Company has continued to suspend flight operations with routine commercial flights currently suspended until at least 31 July 2020. The Company is performing limited repatriation flights from South Africa to Zimbabwe, approximately three flights per month. The Company intends to resume routine commercial flight operations once permitted by the South African and Zimbabwean Governments and its flying programme will remain flexible in the weeks and months ahead depending on how each respective government phases the release of its lockdown and, thereafter, on demand for seats. At all times, the safety and wellbeing of the Company's staff and customers remains of paramount importance and focus. The Company continues to assess the situation daily and will provide further updates as and when necessary.
Capital Requirements and Restructuring Proposals
As previously announced, to address its requirement for further funding to continue operating, the Company had been in discussion with an investor consortium led and underwritten by Solenta Aviation Holdings Limited ("SAHL") and other local investors in Zimbabwe (the "Investor Consortium"), in relation to the disposal of the Group's holding in fastjet Zimbabwe (the "Disposal"). As announced on 1 May 2020, discussions with the Investors Consortium in relation to the Disposal would only restart once the impact and timeline of the lockdowns in South Africa and Zimbabwe were better understood and as such have not restarted.
The Directors believe that, based on current financial projections, funds available and expected to be made available, together with the current creditor terms agreed, the Company will continue to have sufficient resources to meet its operational needs until the end of August 2020. The headroom of available cash resources, however, remains minimal and will be drawn down on during the next few months to sustain and settle fixed costs and obligations of the Company should the lockdowns and travel restrictions in South Africa and Zimbabwe be extended into September 2020 and beyond. If flight operations do not restart to sustainable levels by the beginning of September or the Company is unable to access hard currency from the Reserve Bank of Zimbabwe through repayment against the Company's historical legacy loans, it will cease to be a going concern.
Therefore, in the event that the Company is unable to find alternative solutions before 31 August 2020, then the Directors believe the Company would be unable to continue trading as a going concern beyond 31 August 2020.
So is this rns good or bad
Worth a punt in this with Solenta owning 60% of stock and also their biggest creditor no chance Solenta going to pull the plug on fastjet or big dilution.
That would mean a 600% rise in the price. Noone is going to pay that unless they already own 99% of the company.
Hi. Are you in a position to advice me of the amount of shares currently NOT in public hands. Last time your site was updated it was 79% but I’m aware M&G have sold a high number of shares.
Hi Tony, I have consulted with our Chief Financial Officer, the shareholder content our website shall be updated with the release of the June Share Registry.
Direct from Fastjet to me direct with a Fastjet this afternoon
And someone, some parties were selling hundreds of millions of shares weeks before and upto massive price increase. AIM is a wicked place to trade
Yes, it did happen but the company was not in the same situation as now and also you would need someone to come in and take a big chunk like Solenta did.
As I said earlier currently fjet is priced to fail so if there was an extremely compelling case to pay 6x the current SP and a big investor to stir up PI interest, then maybe.......
.... you have to admit it’s a big maybe :-)
Get the disposal done, raise any additional cash required and set yourself up as the new Cash light business! That’s the plan and that’s what the BoD have to deliver for us, they have a good plan and a good story,
The restructured Group would become a capital light business operating as a franchise house that would earn revenues through the fastjet brand and providing airline management solutions, whilst also continuing to hold its investment in the FedAir business. The Group's strategy is to focus on franchise and providing airline management solutions to additional airlines in Africa that are independently owned, enhancing its overall revenues from these. Additionally, the Group would aim to only own airlines once they were cash generative and profitable, so avoiding the initial costs and significant cash losses through the airline startup phase and from operating in Africa's sometimes uncertain trading environment.
Not to worry get_rich_quick. TBH I think the chances are M&G probably are completely out by now. If we get some sort of financing lifeline tomorrow this could rise significantly. If we don't then it will probably drift further downwards.
Interesting...rare to get a placing away at a higher price but it does happen as you say previously. To pay a higher price there must have been a very good reason. If the company can demostrate a viable future then i guess a placing at 1p does not sound out of the question. at the present price FJet is pretty much priced to go bust, however as a viable business it is worth a great deal more imo
Why would anyone have gone for a 8p placing when share price was 3p! But they did.
A 1p placing.... hmm interesting. Why would anyone go for a 1p placing?
Every chance with covid coming in play when they were planning on £8 million sale of Zimbabwe assets/they won’t get £8 million now but we know they need £8 million to keep going. They won’t do a placing with increase of 30% more shares coming to market so placing has to be around 1penny. Sounds mad but they did placing at 8p before when sp was in the 3p range.
You are absolutely not being dense, and if anything, I must apologise, as I have become confused.
I could blame alcohol but I've somewhat of a hardened drinker and shouldn't have skim read it.
So, apologies all. The Rns does NOT say they are at 0%. That is completely my misreading and I apologise.
That said; normally when insti's drop below the 3% threshold, they normally sell every share, so I still expect this to come about.
I am sorry Muldoon.
Just wondering what are the chances for a placing?.
Claza, It depends on the forward looking plan the company gives and whether the financing solution for their new strategy is through the disposal or raising short term cash. Good news will see us back to 0.6 minimum IMO.
M&G position is massively reduced ( maybe now 5% or 3% or 0%) but currently irrelevant given where we are, which is:
“ The Company is still assessing its future funding requirements should the Disposal not proceed to enable it to continue as a going concern beyond 31 July 2020 and will issue an updated trading statement in the last week of June 2020.”
To the recent rise a few weeks ago to over 0.60+ which is roughly 3 bags from here. DYOR and Good luck
Yes today's RNS doesn't change anything, it is outdated.
The facts are:
1. M&G reported on 24th June, it crossed 5% threshold on 23rd June, and
2. 5% means that M&G had left less than 190.5 million shares
3. Since 24th June (included) was traded almost 2.000 million FJET shares
...so more likely M&G is out because 5% shares were only 10% of shares since 23rd June.
This is my calculation everything are facts and math except, assumption that M&G wanted to sell the all remaining shares.
Have they just releasing the RNS for a date almost 2 weeks ago?
It makes it very confusing to know whether they are out or not?
Well as long as the the SP rises from tomorrow onwards thats all matters. I hope we see above 0.30 tomorrow. Good luck all
Pardon me if I am being dense, but I can't see any RNS backing up your "This recently disclosed Rns now says they have 0% holding" assertion get_rich_quick. What RNS are you looking at exactly ?
What sort of sp are you thinking it will multi bag to?
LOL seems some peeps can’t read an RNS or a date. Not sure why there is so much focus on M&G. This company is running out of cash, the only question is will they get a deal done to fund themselves Short term and execute their new strategy. They have two possibilities
1. Get the “disposal” done and dusted.
2. Find a new funding agreement to tide them by.
As the company has stated, cash runs out at the end of the month.
The current SP has priced the business to fail, therefore it we get the RNS that funding is secured then the SP will multi bag from here. This is the gamble, high risk and high reward.
Any other points of discussion are a distraction.
I hope for a Monday RNS as Friday ones aren’t always great!