African low-cost start-up Fastjet has further increased its cash position via a share placement with an existing institutional investor and a draw-down on its existing equity facility with Darwin Strategic.
The carrier said the £2.51 million ($4 million) in gross proceeds will be used for working capital.
It received a legally binding contract from the existing institutional investor to raise £2 million by issuing 66,666,667 new ordinary shares at a placing price of £0.03 per share. These shares will rank pari passu in all respects with existing ordinary shares of £0.01 each in Fastjet.
The airline also raised an additional £514,286 by issuing 14,285,714 shares to Darwin Strategic, under its £5 million equity financing facility with Darwin Strategic.