Fastjet Shares Drop By Third As It Continues To Seek Cash To Operate

LONDON (Alliance News) - Fastjet shares crashed on Wednesday as the company reiterated the need for additional funding to continue to operate.

Shares in the low-cost African airline were trading down 34% at 1.56 pence each. Five years ago, on November 1, 2013, Fastjet shares traded at 281.85 pence.

At the end of September, Fastjet said that it required additional capital by the end October for it to continue to operate.

However, due to some improvement in trading and cash generation, Fastkjet said it is able to operate beyond October but will still need to secure additional funding to survive.

The headroom currently available will allow the company to continue discussions with its shareholders and creditors to find a funding solution.

Fastjet said: "Whilst discussions to date with certain shareholders and creditors have been positive, discussions are ongoing and there can be no guarantee of a successful outcome.

"If the company is unable to carry out an equity fundraise and, or reach an agreement with its key creditors in the coming days, the group would be unable to continue trading as a going concern."