31 Oct 2018 07:00
31 October 2018
fastjet Plc
("fastjet", the "Company" or the "Group)
Funding Update
fastjet, the low-cost African airline, is today providing an update in relation to its current cash position and discussions regarding additional funding, following the announcement on 26 September 2018 which noted that additional funding would be required by the end of October to enable fastjet to continue operating.
The Company continues to review its current cash requirements and is able to continue operating beyond the end of October due to some improvement in trading and cash generation. The headroom available allows the Company further time to continue discussions with its major shareholders and creditors.
In conjunction with fundraising discussions, the Company has been negotiating with key creditors of the Group to reduce the outstanding balances due to be paid and reduce the burden of interest and capital repayments. This process remains ongoing.
As at 24 October 2018, the Group had cash balances of US$ 3.4m, of which US$ 2.7m is restricted cash held inside Zimbabwe.
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.
Further announcements will be made as appropriate.
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
For more information, contact:
fastjet Plc | Tel: +27 (0) 10 070 5151 |
Nico Bezuidenhout, Chief Executive Officer Michael Muller, Chief Financial Officer
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UK media - Citigate Dewe Rogerson | Tel: +44 (0) 20 7638 9571 |
Angharad Couch, Eleni Menikou, Toby Moore, Nick Hayns | |
South African media - Hein Kaiser | Tel: +27 (0) 82 520 0555 |
For investor enquiries please contact: | |
Liberum Capital Limited - Nominated Adviser and Broker | Tel: +44 (0) 20 3100 2222 |
Clayton Bush, Andrew Godber, James Greenwood, Trystan Cullen
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NOTES TO EDITORS
About fastjet:
fastjet is a multi-award winning (including Skytrax World Airline Awards Best Low-Cost Airline in Africa 2017 and Leading African Low-Cost Carrier, World Travel Awards 2016, 2017 and 2018) African value airline for everyone that began flight operations in Tanzania in November 2012, flying passengers from Dar es Salaam to just two domestic destinations - Kilimanjaro and Mwanza.
Today, fastjet's route network includes Tanzanian domestic routes from its Dar es Salaam base to Kilimanjaro, Mbeya, and Mwanza, and international routes from Tanzania to Lusaka in Zambia and Harare in Zimbabwe. fastjet began branded domestic flights in Mozambique (Operated by Solenta Aviation Mozambique) in November 2017, its network presently between Maputo and Beira, Quelimane and Tete and celebrated its third year of operations in Zimbabwe in 2018. The carrier operates between Harare and Bulawayo, Harare and Victoria Falls and from Harare and Victoria Falls to Johannesburg in South Africa. The airline has flown over 3.5 million passengers with an impressive on-time performance aggregate, establishing itself as a punctual, reliable, and affordable carrier.
fastjet Plc is quoted on the London Stock Exchange's AIM Market.
For more information see www.fastjet.com