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Global Crossing Airlines and Canada Jetlines Ltd. Announce CAD100 Million Equity Investment Agreement with the Global Emerging Markets
Miami, Florida--(Newsfile Corp. - May 6, 2020) - Global Crossing Airlines, Inc. (" GlobalX ") ...
About this update from Global Crossing Airlines Group, Inc.
[{"type":"text","content":"Global Crossing Airlines and Canada Jetlines Ltd. Announce CAD100 Million Equity Investment Agreement with the Global Emerging MarketsMiami, Florida--(Newsfile Corp. - May 6, 2020) - Global Crossing Airlines, Inc. (\"GlobalX\") and Canada Jetlines Ltd. (TSXV: JET) (the \"Company\" or \"Jetlines\") are pleased to announce that GlobalX has signed an agreement (\"Agreement\") with GEM Global Yield LLC SCS (\"GEM\"), the private alternative investment group to provide the GlobalX with up to CAD 100 million over a 36 month term following the previously announced business combination of GlobalX and Jetlines (the \"Transaction\"). Upon completion of the Transaction, Jetlines will have acquired GlobalX and the resulting issuer will be named Global Crossing Airlines Inc. (the \"Resulting Issuer\"). GlobalX will use the funds to strengthen its business by providing the financial resources to work to complete FAA and DOT certification requirements, develop its business segments and markets, and acquire new and used Airbus A320/321 aircraft to grow the company.The initial CAD 100 Million will be in the form of a capital commitment that allows the Resulting Issuer to draw down funds during the 36-month term by issuing shares of the Resulting Issuer's common shares to GEM (or such persons as it may direct) and subject to share lending arrangement(s) being in place.The Resulting Issuer will control the timing and maximum amount of drawdown under this facility and has no minimum drawdown obligation. Concurrent with the closing of the Transaction, the Resulting Issuer will issue warrants to GEM to purchase up to six per cent (6%) of the outstanding common shares of the Resulting Issuer on a fully diluted basis. Joseph DaGrosa, Chairman and lead investor of GlobalX, stated: \"We are excited to be working with GEM as we grow GlobalX. They have been extremely supportive, understand our business, believe in our vision and remain committed during this challenging economic climate. The timing for GlobalX is excellent, as we are now seeing the availability of aircraft on very favorable lease terms as well as highly experienced pilots, and also significantly increased charter opportunities beginning later in 2020 as many airlines downsize and focus on their own core scheduled markets.\"About GEMGlobal Emerging Markets (\"GEM\") is a US$3.4 billion alter...