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Canada Jetlines has concluded a non-brokered private placement of $3.35 million

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Canada Jetlines (JETMF), a new low-cost leisure airline based in Canada, has completed its non-brokered private placement, raising $3.35 million.

The start-up airline declared on April 26, 2022 that it had completed its private financing event and sold over 9.5 million units. Each unit comprises of one common or variable voting share and one-half of a warrant at a price of $0.35 per unit.

Warrant holders gained the right to buy further shares at $0.50 per share for 48 months after the offering closed, as well as an advantage to buy additional shares at $0.65 per unit in the third and fourth years after purchase.

“The lead investors in the offering were Roosheila Group and institutional investor Broadway Capital Management,” Canada Jetlines (JETMF) 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 (JETMF) also stated that the transaction helped to strengthen its financial sheet by $3.35 million, which will be used for ongoing licensing processes as well as “general corporate and working capital purposes,” according to the carrier.

“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.

Canada Jetlines (JETMF), which was founded in 2013, is now awaiting regulatory certification from Transport Canada and plans to begin commercial flights in summer 2022.

According to data from Planespotters.net, the airline, which aspires to service leisure locations across the US, Caribbean, and Mexico, presently has only one 12-year-old Airbus A320-200 passenger aircraft in its inventory.

According to the official website of Canada Jetlines (JETMF), the airline plans to increase its fleet to 15 Airbus family jets by 2025.

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