Low-cost long-haul operator Norse Atlantic Airways has cancelled a proposed supplemental share offering, because the carrier’s stock price does not warrant the issue.
Norse Atlantic carried out a private share placement in November last year which raised NKr96.4 million – about $8.7 million at the time – and intended to limit its dilutive effect by offering additional stock to other shareholders.
This supplemental offering would have involved issuing up to 82.8 million shares which, at a price of NKr5, would have been worth up to NKr414 million.
But the carrier states that, in the four months since the proposal was put forward, the airline’s shares have largely traded below the planned NKr5 offer price.
“Any existing shareholder wishing to reduce the dilutive effect of the private placement has had sufficient opportunity to purchase shares in the market at prices at, or below, the [supplemental offer] price,” it says.
Norse states that, as a result, its board of directors has opted “not to proceed” with the supplemental offering.
