Global Crossing Airlines (NEO: JET) is looking to raise funds for its operations. The company last night announced a non-convertible debenture offering, which is being lead by Alterna Capital Partners.
The offering will see the company look to raise total gross proceeds of US$6.0 million, with Alterna’s lead order amounting to US$2.5 million. The debentures are set to contain a two year term, bear interest at a rate of 15% per annum, and be non-convertible.
Further, the debt is to be secured against the “tangible fixed assets” of the company. The company is eligible to repay the debt with 30 days notice at any time.
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Warrants are also included in the offering, with one warrant being issued for every $1.24 of principal, or in simpler terms, 806 warrants are to be issued for every $1,000 issued. Warrants are valid for a period of two years and contain an exercise price of US$1.24 per share.
Proceeds from the offering are to be used by the company to secure three A320 aircraft, which are slated for delivery in the second quarter of this year and to be used for charter operations. Additional funds will be used for deposits on the first four A321F aircraft slated to be received by the fourth quarter of this year.
Global Crossing Airlines last traded at $1.35 on the Neo.
Information for this briefing was found via Sedar and Global Crossing Airlines. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
