LONDON (Alliance News) - Budget African airline Fastjet PLC said Friday it has raised GBP551,719 its open offer to shareholders and passed two of the three resolutions on offer at its annual general meeting.
Fastjet shareholder passed resolution one, giving the board the authority to allot and issue shares and disapply pre-emption rights for the purposes of equity financing.
Shareholders also passed resolution two, giving the board ongoing authority to allot and issue shares. Resolution three - giving the board ongoing disapplication of pre-emption rights - was withdrawn and, therefore, not passed.
Fastjet raised the GBP551,719 through the issue of 55.1 million shares at 1 pence each. The airline said the open offer provided existing shareholders with the opportunity to maintain their holding, avoiding dilution as a result of Fastjet's equity refinancing.
In November, Fastjet said it is planning to raise at least to USD40 million via a placing, a subscription, and an issue of equity.
Fastjet plans to raise no less than USD15.6 million combined via a placing and a subscription, with the former now complete. Under the subscription, it will issue 316.7 million shares at 1p to Solenta Aviation Holdings Ltd, raising USD3.2 million. The placing raised USD11.5 million, at the same price of 1p per share.
Fastjet also will issue 1.91 billion shares at 1p to raise USD24.4 million to buy four Embraer 145 aircraft from Solenta, and to settle loan and professional fees.
The Solenta subscription is conditional on Fastjet being able to amend the existing lease agreement it has with GECAS, the aviation financing business of US conglomerate General Electric Co, for two Embraer 190s.
However, Fastjet said "despite considerable efforts" the GECAS agreement has not yet been amended.
The airline said it continues to review its current cash requirements and is able to continue operating until Friday next week. As of Thursday, Fastjet had cash balances of USD6.8 million, of which USD6.4 million is restricted cash held inside Zimbabwe.
If Fastjet is unable to satisfy the GECAS condition, the equity refinancing and open offer, it will not be unable to continue trading as a going concern.
Shares in Fastjet were up 7.5% Friday at 1.64 pence each. The stock started 2018 trading at 12.87p
