Canadian leisure carrier, Canada Jetlines Operations Ltd. (NEO: CJET) has announced its intentions to undertake a “non-brokered private placement”, aimed at raising $13,500,001.
The offering will involve the issuance of common shares at a price of $0.1721252 per Share. This private placement will be conducted with a single arm’s length investor, Jetstream Aviation Inc.
Offering in 3 tranches
To ensure a smooth process, the offering will be divided into three separate tranches. The first tranche is scheduled to be settled within two business days following the approval of the Neo Exchange Inc (the “Exchange”), subject to the fulfillment of other closing conditions.
For clarification, a “tranche” is a “collection of securities that can be split up into smaller pieces and sold to investors.” (Investopedia, 2020). Said tranches can have different maturities, credit ratings, and yields.
During this initial tranche, the investor will acquire 19,598,017 shares, which represents approximately 19.9% of the company’s issued and outstanding shares. The aggregate purchase price for this tranche will amount to $3,373,313.
It’s important to note that the completion of the second and third tranches will require shareholder approval, as these transactions will result in the creation of a new “control person.”
Shareholder meeting
The company plans to seek this approval at a special meeting of shareholders, which will be promptly scheduled to take place in Ontario.
Assuming shareholder approval is obtained, the second tranche is expected to close two business days after the Meeting.
During this tranche, the investor will acquire additional shares, further solidifying their investment in Canada Jetlines Operations Ltd.
This exciting development for Canada Jetlines as it secures the necessary funding to support its operations and growth plans. Stay tuned for more updates on this significant milestone in Canada Jetlines’ journey!
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