Canada Jetlines has announced it intends to raise CAD $13,500,001 through a non-brokered private placement with Jetstream Aviation Inc., a Canadian corporation described as a "single arm's length investor." The primary purpose of this offering is to use the net proceeds for "aircraft acquisition, general corporate, and working capital purposes."
The offering is planned to close in three separate tranches. After all three tranches are complete, Jetstream Aviation Inc. will possess 78,431,287 shares of Canada Jetlines, accounting for about 50% of the total issued and outstanding shares.
An important aspect of this transaction is that Jetstream Aviation Inc. will earn the right to nominate two directors to Canada Jetlines' Board. The first director's appointment will align with the closing of the second tranche, while the second director will be nominated as the third tranche closes.
In AUG 2023, Open Jaw reported that Canada Jetlines has unveiled an expanded winter flight schedule to sun destinations. Starting this fall, travellers can fly Jetlines between Toronto and Montego Bay, Jamaica, and Orlando – in addition to existing services to Cancun, Mexico, and Las Vegas.
More information on Canada Jetlines' website.
Note: An "arm's length investor" typically refers to an investor that has no prior relationship with the company, ensuring that the transaction is conducted fairly and impartially. The full release can be found here.
