Skywest’s capital plan

REGIONAL airline Skywest has reopened its $2.7 million capital raising after complying with an Australian Securities and Investments Commission request to appoint a trustee.

The company is seeking to raise $2.7 million through a convertible note issue, with the right to accept a further $1.5 million in oversubscriptions.

The capital raising is scheduled to close on August 27.

ASIC informed Skywest last month that the prospectus should be altered to reflect its preferred description of the securities being offered.

The company responded by appointing Professional Funds Management as trustee and lodging a supplementary prospectus.

The appointment of a trustee had not been considered necessary by Skywest’s legal advisers on the basis that the convertible note was not considered to be within the definition of a debenture under the Corporations Act.