Turbulence-struck Flyr is looking at alternative transaction structure

Norwegian low-cost carrier Flyr launched a private placement valued at NOK430 million, but it failed to attract enough investors. The airline is looking for an alternative transaction structure after yesterday’s subscription period for the contemplated private placement expired. The board of directors opts for a combination of existing and new professional investors.

The airline contemplates a capital raise to potentially raise gross proceeds of up to NOK 700 million through the issuance of up to 70 billion new shares at a subscription price of NOK 0.01 per share.

Seen as in the best interest of the airline, the company will raise the money in four transactions. The first transaction (raising gross proceeds to NOK 250 million) will be used to re-establish Flyr through the first quarter of 2023.

The other transactions will enable Flyr to be positioned to ramp up for the coming spring and summer (2023) based on the business plan and market assumptions.