Reference is made to the stock exchange announcement by
In connection with the Private Placement the Company communicated that it was dependent on raising further capital from the November Financing Plan by the end of Q1 2023 to pay the Emission Trading System quotas (
Following completion of the Private Placement the share price of the Company has traded considerably below the subscription price of the November Financing Plan, which meant that succeeding with the November Financing Plan became increasingly unlikely. As such, the Company had to consider alternatives to secure its financial needs.
The Company's management and board of directors have worked intensively to achieve a viable long-term solution for the Company's operations, which would strengthen the business plan of the Company and increase the chances to raise the necessary liquidity to sustain operations. In cooperation with its financial advisors, the Company has explored a number of different alternatives, including increased wet lease operations and other strategic alternatives.
Due to the global shortfall in available aircraft, the Company experienced stronger than expected demand for wet lease and charter operations. In
The commercial terms of a wet lease agreement for 6 aircraft with a European airline was agreed in principle on 23rd
The evaluation done by the Company and its financial advisors was that this wet lease agreement, which would have secured the income and a profitable operation for 50% of the Company's fleet for the entire period from the end of March to the end of
In order to be ready to perform its obligations under the wet lease agreement commencing in
After discussions with the Company's financial advisors
In spite of the de-risking of the investment case, and the support from several key shareholders, the Managers have not yet been able to raise the sufficient market underwriting, even though a rights issue would be expected to take place at a discount to the theoretical ex-rights share price following the capital raise. Market conditions and continued uncertainty with regards to airline travel and earnings through 2023 have deterred investors from committing capital for the required period of time, in spite of the Company's wet lease opportunities and improving tickets sale. Underwriting, or the support for a private placement, has been sought on a confidential basis, since a non-underwritten share issue would have been insufficiently robust given the Company's short term financial commitments. Due to the unsuccessful process to underwrite a rights issue or carry out a private placement, the Company is now in a critical short term liquidity situation.
The Company and the Board will continue its efforts to explore solutions for the Company, including exploring whether there are feasible alternatives to secure continued operations, and will revert with further information as and when appropriate. There is, however, no guarantee that a solution that would create a meaningful shareholder value for the current shareholders will be found.
For further information, please contact:
Investor relations
Email: investors@flyr.com
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements according to section 5-12 of the Norwegian Securities Trading Act. The information was prepared by Brede Huser, CEO at
http://publish.ne.cision.com//Release/ViewReleaseHtml/BE232C4B0FDDD269E0C856B0705FC7D6
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