Avanti Communications, the troubled speciality satellite operator, suffered a 15.4 per cent fall in its share price June 4th as investors anticipated a cash-raising exercise which would dilute their holdings.
Some small shareholders suggest that Avanti, which needs to raise around $90 million in order to pay bills and fund operations, will create new shares and place them onto the market at around 4.25 pence/share. June 4th closing price for Avanti stock was 5.20 pence/share.
Avanti has a new satellite in orbit, Hylas 4, which launched April 5th and which is undergoing in-orbit testing. Testing is scheduled to wrap in July when the satellite will be ready for business.
Avanti’s debt burden is about $217 million. Avanti has said that the extra $90 million is needed to be in place by the end of June.
In its most recent results statement Avanti said that revenues for the 9 months to March 31st were $31.3 million, and the business lost $18 million in the period.
Last week the company announced the unexpected departure of co-founder (and CTO) Dave Bestwick, who will leave this month. David Williams, Avanti’s CEO left the company last August.