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Fastjet PLC

fastjet warns it could go bust if it can’t raise fresh cash

The troubled low-cost African airline said it is going through a “quieter” period of trading which has put pressure on its cash balances

fastjet plane
fastjet shares had once traded at almost £90

fastjet PLC (LON:FJET) saw almost two-thirds of its value wiped away on Wednesday after warning the market that it could go bust if shareholders don’t stump up some more money.

The low-cost African airline, which is majority-owned by easyJet PLC (LON:EZJ) founder Sir Stelios Haji-Ioannou, has burned through US$4mln over the past month, leaving it with a cash balance of US$3.3mln.

READ: fastjet shares weak after cautious trading update; Liberum Capital cuts price target

fastjet said it is in “active discussions” with some of its major shareholders about a possible equity fundraise to try to steady the ship.

“In the absence of [a fundraising] the group is at risk of not being able to continue trading as a going concern,” read Wednesday’s gloomy statement.

The AIM-quoted firm added: “Whilst initial discussions with certain shareholders have been positive, discussions are ongoing and there can be no guarantee of a successful outcome.”

Shares dived 64% to 5.6p, valuing the company at less than £20mln. At one point back in 2006, shares were worth almost 9,000p.

Quick facts: Fastjet PLC

Price: £0.01

Market: AIM
Market Cap: £54.16 m
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