FastJet to issue new shares

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By TESTCustomwebLP TESTCustomwebLP April 11, 2014 22:45

FastJet to issue new shares

Further to the announcement of 2 April regarding discussions with parties for long term financing, fastJet confirms that it is conducting a proposed issue of new shares to raise gross proceeds of at least £10 million with institutional and other investors. The airline says that it expects to provide further details shortly.

As part of these negotiations, easyGroup IP Licensing has agreed to invest £1 million in cash into a placing of new equity in fastJet subject to a minimum total placing of £10 million.  easyGroup Holdings has also, subject to the closing of such a placing agreed to receive new shares to the value of £1.51 million at the placing price in lieu of all future consultancy equating to approximately £4.3 million over the next eight years due under the brand licence agreement entered into with fastJet in May 2012.  Other than this amendment to conditionally terminate the consultancy element, all other terms of the brand licence agreement remain unchanged.

FastJet expects to publish its financial statements for the year ended 31 December 2013 in June.  The company had continued to trade in line with management expectations since 30 June 2013 and it expects, for the full group including the Fly540 operations, revenue for the year ended 31 December 2013 to be approximately $53 million and the operating loss before tax and exceptional items is expected to be approximately $47 million.  Further impairments in relation to the Fly 540 businesses during the remainder of the year are not expected to exceed $25 million.  The restructuring of the Fly540 operations is very well advanced and will be completed shortly. During 2013 less than $650,000 of fastjet Plc cash was utilised in the legacy Fly540 operations.

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By TESTCustomwebLP TESTCustomwebLP April 11, 2014 22:45
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