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Yorkville Advisors completes equity financing deal with 1Time

Yorkville Advisors, the US-based alternative investment manager, has entered into a ZAR50m standby equity distribution agreement on behalf of one of its funds with Johannesburg Stock Exchange listed 1Time Holdings, the parent company of a low-fare airline operating in South Africa.

The deal was advised out of London.

1Time entered into the agreement as a means of raising additional capital to develop and expand its business.

1Time operates scheduled domestic services. Its main base is OR Tambo International Airport in Johannesburg and it has hubs at King Shaka International Airport, East London Airport and Cape Town International Airport, among others.

Under the terms of the agreement, 1Time can withdraw funds of up to ZAR50m in tranches for up to 32 months in exchange for the issue of new equity. The newly issued shares will be priced at a discount to the prevailing market price at each drawdown. 

Michael Snyman, group financial director of 1time, says: “We are very pleased to have secured this agreement with Yorkville at this stage of the company’s lifecycle. This facility provides us with the flexibility to raise capital in tranches as and when required and will assist in our continued growth strategy.”

Brian Kinane, managing director, Yorkville Advisors UK, says: "We are pleased to be working with 1Time as it offers multi-faceted exposure to African aviation, has a profitable business model, and clear competitive advantages over its competitors. The SEDA commitment of ZAR50m will enable 1Time to grow into its vision and enhance its ability to prudently manage financial risk.”

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