African carrier Fastjet has terminated a convertible securities deed with Bergen Global Opportunity Fund.
The budget carrier entered into a convertible securities agreement with the New York-based institutional investor in March to tap the market. The initial convertible security had nominal value of £2.56 million ($3.98 million) and an 18-month term. It was issued in six tranches.
However Fastjet says in an announcement that the convertible securities arrangements does not represent best value for the company because of its potential impact on the company's share price.
At 10 June 2013, its share price was £1.22 compared with more than £4 at the beginning of this year.
"The board believes other sources of finance available to the company to be in the better interests of the company and its shareholders and has accordingly terminated the convertible securities deed," says Fastjet's chairman David Lenigas.