Funding Update

RNS Number : 8304G

Fastjet PLC

09 November 2018

 

9 November 2018

fastjet Plc

("fastjet", the "Company" or the "Group)

Funding Update

fastjet, the low-cost African airline, is today providing a further update in relation to its current cash position and discussions regarding additional funding, following the announcement on 31 October 2018 which noted that additional funding would be required and 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.

The Company continues to review its current cash requirements and is able to continue operating during November due to some improvement in trading, cash generation and internal efficiencies. The headroom available allows the Company further time to continue discussions with its major shareholders and creditors.

As previously announced, 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 has been constructive but remains ongoing.

As at 7 November 2018, the Group had cash balances of US$ 3.9m, of which US$ 3m 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, 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: [phone]
Nico Bezuidenhout, Chief Executive Officer Michael Muller, Chief Financial Officer
UK media - Citigate Dewe Rogerson	Tel: [phone]
Angharad Couch, Eleni Menikou, Toby Moore, Nick Hayns
South African media - Hein Kaiser	Tel: [phone]
For investor enquiries please contact:
Liberum Capital Limited - Nominated Adviser and Broker	Tel: [phone]
Clayton Bush, Andrew Godber, James Greenwood, Trystan Cullen

 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.

 

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