Home Travel agency Canada Jetlines Announces Closing of Equity Financing

Canada Jetlines Announces Closing of Equity Financing

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TORONTO–(BUSINESS WIRE)–Canada Jetlines Operations Ltd. (NEO: CJET) (“Airlines of Canada“or the”Company), the new all-Canadian leisure carrier, announced that it closed its previously announced non-brokered private placement today to raise a total of $3.35 million (the “Offer”). The offering consisted of 9,571,413 units issued at $0.35 per unit (each aUnity”). Each unit consists of one common or variable voting share (each a “Share”) and half of a term (each full term being a “To guarantee”). Each warrant entitles its holder to purchase one additional share for a period of 48 months after closing at a price of $0.50 per share during the first two years following the issuance of such warrant; and $0.65 per share in the third and fourth years after issuance.

The principal investors in the Offering were Roosheila Group Inc. and institutional investor Broadway Capital Management. Roosheila Group Inc. is a portfolio company of travel industry veteran Reg Christian. Broadway Capital Management is a New York-based value manager.

The Company intends to use the net proceeds of the Offering to advance the Canadian air carrier licensing process and for general corporate and working capital purposes. No finder’s fee was paid in connection with the Offer. The securities issued under the Offer are subject to a legal hold period which expires on August 27, 2022.

Following the placement, Roosheila Group Inc. (“Roosheila“), of 99 Dundas St. East, 2nd Floor, Mississauga, ON LSA 1W7 will own and control 7,142,857 shares of the Company, representing approximately 11.90% of the issued and outstanding shares, and 3,571,428 warrants. Assuming the exercise of all Warrants held by Roosheila, Roosheila will own and control 10,714,285 Shares, representing, on a partially diluted basis, approximately 16.84% of the then issued and outstanding Shares. the warrants were acquired for investment purposes and Roosheila may increase or decrease its beneficial ownership or control depending on market or other conditions.The shares and warrants acquired by Roosheila were acquired pursuant to an exemption from the prospectus requirement provided for in section 2.3 of NI 45-106 An alert report for Roosheila will be filed with the applicable Canadian securities commissions in respect of the www.sedar.com.

This press release does not constitute an offer of securities for sale in the United States. The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold in the United States absent registration in United States or an applicable exemption from registration requirements in the United States. .

About Canada Jetlines

Canada Jetlines is a well-capitalized leisure-focused carrier, using a growing fleet of Airbus320 aircraft that is targeting start-up in the summer of 2022, subject to Transport Canada approval. The carrier was created to provide Canadian consumers with more value choices and travel options to fly to coveted sun and leisure destinations in the United States, the Caribbean and Mexico. With a projected growth of 15 aircraft by 2025, Canada Jetlines aims to deliver the best in operating economics, customer comfort and electric flight technology, delivering a customer-centric experience from the first point of contact. The efficient aircraft design combined with the experience of the all-Canadian management team allows for accessible flight options without sacrificing quality or convenience. The carrier will use a state-of-the-art online booking platform, making the turnkey solution available to travel agents, tour operators and consumers, with the ability to generate revenue on bookings and auxiliary sales. Our goal is to provide more revenue opportunities to express our gratitude to current and future grant agents and all the work they do. We look forward to working with you to create memorable travel experiences for consumers. To learn more, please visit www.jetlines.com and follow on all social media platforms for news and updates.

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Caution Regarding Forward-Looking Information

This press release contains “forward-looking information” regarding anticipated developments and events that may occur in the future. Forward-looking information contained in this press release includes, but is not limited to, the company’s intention to operate as a leisure airline, the intention to offer the lowest possible price, the number of aircraft it intends to operate, the destinations of its planned flights, completion of the CTA and Transport Canada approval process, growth plans, expected timeline to begin service destinations, activities of Jetlines and use of proceeds of the offer.

In some cases, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “expected”, “estimates”, “anticipates”, “intends”, ” anticipates” or variations of such words and phrases or statements that certain actions, events or results “could”, “could”, “would”, “could” or “will be taken”, “occur” or “will be achieved” suggesting future results, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements regarding future events or performance. The forward-looking information contained in this press release is based on certain factors and assumptions regarding, among other things, the receipt of funding to start flight operations; the accuracy, reliability and success of Jetlines’ business model; the timely receipt of government approvals, including from the CTA and Transport Canada; Jetlines reaching definitive agreements for planes to begin flight operations; the rapid start of operations by Jetlines and the success of these operations; the legislative and regulatory environments of the jurisdictions where Jetlines will operate or carry on business; the impact of competition and the competitive response to Jetlines’ business strategy; and aircraft availability. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. These factors include risks relating to the ability to obtain financing on acceptable terms, the impact of general economic conditions, domestic and international airline industry conditions, the Company’s inability to enter into definitive agreements to aircraft acquisition, supply chain disruptions leading to schedule delays, impact of global uncertainty created by COVID-19, future shareholder relationships, fuel price volatility , increased operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, management’s ability to implement Jetlines’ operating strategy, ability to attract qualified executives and personnel, labor disputes, regulatory risks, including risks related to obtaining necessary licenses and permits with Transport Canada, the Canadian Transportation Agency and other regulatory agencies, and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with competent Canadian securities authorities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or expected. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update any forward-looking information.