27 Jun 2018 07:00
27 June 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.
On 5 June 2018 the Company announced that it had entered into unsecured loan agreements with third parties, Annunaki Investments (Private) Limited ("Annunaki") and SSCG Africa Holdings ("SSCG"), in order to make available a portion of the Group's restricted cash held within Zimbabwe. In addition, the Company announced that it was entering into the quieter period of trading across the calendar year and on forecast projections, headroom over available cash resources was minimal, particularly in the early part of the next 12 months. The cash balance for the Group as at 24 May, in advance of entering into the above loan agreements, was $7.5m ($5.4m of which was restricted cash in Zimbabwe of which US$5m was utilised to fund the loan to Annunaki. fastjet received a loan of US$2m from SSCG).
Since that date the Company has continued to consume cash and as of 18 June 2018 the Company had a cash balance of US$3.3m reflecting the recent purchase of equity in the three ATR72 aircraft, further operating cash outflows and a creditor reduction. US$1.75m of this is restricted cash in Zimbabwe net of the loan swap agreements.
The Company is currently in active discussions with its major shareholders regarding a potential equity fundraising, in the absence of which the Group is at risk of not being able to continue trading as a going concern. Whilst initial discussions with certain shareholders have been positive, discussions are ongoing and there can be no guarantee of a successful outcome. It is expected that any equity fundraise will be concluded in conjunction with the announcement of the Company's annual results for the year ended 31 December 2017. If the fundraise is not successful it will result in the annual results not being published and the Company being suspended from trading on AIM.
Further announcements will be made as appropriate.
For more information, contact:
fastjet Plc | Tel: +27 (0) 10 070 5151 |
Nico Bezuidenhout, Chief Executive Officer Michael Muller, Chief Financial Officer | |
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, Jill Li, Neil Elliot
|