Icelandic budget carrier Play is to hold talks with other investors after its largest shareholders subscribed to new shares worth IcKr2.58 billion ($18.7 million).

The airline, in early February, stated that it was seeking new share capital of IcKr3-4 billion to reinforce its cash position.

It has since secured binding commitments to 574.9 million shares with a subscription price of IcKr4.5, giving a total injection of IcKr2.58 billion.

Play says that – having obtained this commitment – it will conduct discussions with other investors from its current shareholder base, as well as potential other investors, to increase the overall level of funding.

Play Airbus-c-Play

Source: Play

Play is seeking investment of IcKr3-4 billion

Chief executive Birgir Jonsson says the airline has received “strong support” and a “clear message” from investors.

“Participation of our strong shareholder base in this planned capital increase creates a firm foundation for achieving the goals set by the company,” he adds.

“We see clear signs of improvement in our operations and our current cash position is more than adequate, despite our steep growth and repeated setbacks in our operational environment.”

He says the additional funding will strengthen the carrier against “unexpected storms” and provide it with the means to take advantage of growth opportunities.

Play says the subscriptions depend on the carrier’s shareholders’ agreeing to increase the company’s capital at its 21 March annual general meeting, and on its receiving total subscriptions for shares worth at least IcKr3 billion.