Canada Jetlines, the new Canadian low-cost leisure airline, has closed its non-brokered private placement to raise a total of $3.35 million.
On April 26, 2022, the start-up airline announced that it had closed the private financing event and had sold more than 9.5 million units. Each unit consists of one common or variable voting share at a price of $0.35 per unit as well as one half of a warrant.
The warrant holders received the right to purchase additional shares at $0.50 per share for a period of 48 months following the offering closure and an advantage to obtain the additional amount of shares at $0.65 per unit in the third and fourth years after acquisition.
“The lead investors in the offering were Roosheila Group and institutional investor Broadway Capital Management,” Canada Jetlines said in a statement.
“As a result of the offering, Roosheila Group 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 of the warrants held by Roosheila, Roosheila would own and control 10,714,285 shares, representing, on a partially diluted basis, approximately 16.84% of the then-issued and outstanding shares,” the statement continued.
Canada Jetlines also noted that the move helped to strengthen its balance sheet with $3.35 million, which the carrier said will be used for its ongoing licensing processes as well as “for general corporate and working capital purposes”.
“The Company intends to use the net proceeds of the Offering to advance the Canadian airline licensing process and for general corporate and working capital purposes,” the carrier further explained.
Founded in 2013, Canada Jetlines is currently waiting for the necessary regulatory approvals from Transport Canada and aims to launch commercial operations in summer 2022.
The airline, which aims to serve leisure destinations across the US, Caribbean, and Mexico, currently has just one single 12-year-old Airbus A320-200 passenger aircraft in its fleet, according to data from Planespotters.net.
However, according to the official Canada Jetlines website, the carrier hopes to expand its fleet to 15 Airbus family planes by 2025.