FASTJET ANNOUNCEMENT EXPECTED TODAY ON SUCCESS TO RAISE FURTHER CAPITAL
(Posted 31st October 2018)
Funding Update as per London Stock Exchange requirements:
Fastjet 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.