Fastjet has increased its working capital by £4.03 million ($6.28 million) through a combination of a new subscription and a draw down on an existing equity financing facility (EFF) agreement.
The African start-up says it has received legally binding contracts to raise £3.5 million by issuing 155,555,556 new ordinary shares at a placing price of 2.25p per share.
These new shares will rank pari passu in all respects with existing ordinary shares of 1p each in Fastjet.
In addition, the airline has raised £528,125 by issuing 16.25 million new ordinary shares of 1p each to Darwin Strategic Limited, a subsidiary of Henderson Global Investors Volantis Fund. This issuance comes under an existing £5 million EFF agreement.
The new EFF shares will be issued at a price of 3.25p per share and will also rank pari passu in all respects with existing ordinary shares of 1p each in Fastjet.
The airline says the EFF shares will be available to trade on AIM, the small companies market at the London Stock Exchange, by 15 February. An announcement about the admission of the shares in the £3.5 million placement will be made in due course.
Fastjet's new enlarged share capital will comprise of 2,072,416,561 ordinary shares with voting rights.
The airline, which operates domestic Tanzanian flights, did not provide details about the intended use of the funds. It plans to expand its fleet of three Airbus A319s to between six and 12 aircraft by the end of 2013, launching new flights across eastern and southern Africa.
However, it is also embroiled in a legal dispute with Five Forty Aviation, the parent company of affiliate Fly540, over licensing and ownership issues.