Scandinavian operator Norse Atlantic has cancelled a proposed additional offering of shares, because the company’s stock price is below the threshold for issue.
Norse had been considering the additional offering as a follow-up to a private placement disclosed in October.
This offering would have comprised up to 12.09 million new shares at the same price as the privately-allocated stock – raising up to NKr93 million ($9.2 million).
But the carrier states that, after the private placement, its shares were trading below the proposed offer subscription price.
“Any existing shareholder seeking to reduce the dilutive effect of the private placement has had sufficient opportunity to purchase shares in the market at prices at, or below, the subscription price,” says Norse.
Given this situation, it adds, the company’s board has “resolved to cancel” the additional offering.
