Norse Atlantic has secured approximately NOK 113 million ($11.3 million) in new equity through a private placement at market price.
The low-cost airline sold almost 14.8 million new shares to “selected strategic investors”, as well as the company’s two largest shareholders, B T Larsen & Co and Songa Capital.
The strategic investors include Futrono Investment Spa and related parties, Estrella Del Sur Limitada, and Mulina Overseas Corp.
The subscription price in the private placement was set at market price of NOK 7.6938 per share, which is equal to the volume weighted average price (VWAP) of the company’s shares in the three days prior to the offering.
Bjørn Tore Larsen, CEO of Norse Atlantic, said the new investment is a “clear validation” of the airline's status as an efficient long-haul, low-cost carrier and its improving financial position.
“We are now implementing our dual strategy business model from a position of strength with record load factors year-to-date and a leaner cost base,” he said.
“The proceeds from the placement further enhance our financial flexibility, supporting our plan to deliver material cash flow and long-term value creation for our shareholders.”
The new shares will, following their issuance, represent approximately 9.1% of the company's outstanding shares.
The net proceeds from the private placement will be used to further strengthen Norse's financial position, as well as for general corporate purposes.
In this year’s first quarter, Norse reported a significant improvement in its financial performance, with revenue up 23% year over year to $125.3 m.
Its net loss narrowed substantially from $62.8m in the first quarter of 2024 to $14.9 m.
In this year’s second quarter, Norse posted a positive EBIT of $4.4 million, though still a small net loss. The airline performed well across other metrics, posting 36% passenger growth, 27% passenger revenue growth, and a load factor of 97%.
The company will report its third-quarter earnings on November 26.