fastjet (FN) has scrapped its convertible arrangement with New York-based asset management firm Bergen Global Opportunity Fund, because of the "potential adverse impact on the share price."
The deal, announced in March, would have seen fastjet receive USD23.5million in funding split up into 6 tranches averaging GBP2.57million and staggered over the course of a 18 month interval beginning March.
David Lenigas, Fastjet’s chairman, said the arrangement no longer offered the best value to the company.
"The fastjet board have, after a careful review, decided that the funding provided by the Convertible Securities arrangements does not represent best value for the Company, because primarily of its potential impact on the Company's share price. The Board believes other sources of finance available to the company to be in the better interests of the Company and its shareholders and has accordingly terminated the Convertible Securities Deed."
Bergen would have received convertible securities for the cash that could have been exchanged for shares at close to the market price.
