Norwegian airline Flyr has raised NOK 250 million (US$24.7 million) in gross proceeds via the private placement of 25,000,000,000 new shares, at a price per share of NOK 0.01. The airline reports that the private placement attracted strong interest from high quality investors in Norway and internationally and was significantly over-subscribed. Flyr has launched a subsequent offering of up to 10,000,000,000 new shares at a subscription price per share of NOK 0.01. The subsequent offering will be cleared for launch following a board meeting on November 16.
Arctic Securities, Carnegie and SpareBank 1 Markets acted as joint bookrunners in the initial private placement.
Flyr noted that the net proceeds will be used to re-establish the company's financial position to bring it through the first quarter of 2023, while the subsequent offering and any proceeds from the exercise of subscription rights will enable the company to be positioned to ramp-up for the coming spring and summer based on its business plan and market assumptions.
Flyr adds however that the proceeds from the private placement will not make room for payment of Emission Trading System quotas (EU ETS) in April 2023 or the required buffer capital for the company's operations in Q2 2023. Accordingly, Flyr states that it will require additional capital to be raised by the end of Q1 2023 through the subsequent offering and any proceeds from the exercise of Subscription Rights. Flyr warns that if it fails to raise this additional new capital by the end of Q1 2023, the company “may not be able to sustain its future operations”.