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.
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.