In our Aug/Sept issue, Rob Erdos muses on float flying and we discuss night aerial firefighting. Plus: Air Canada in the pandemic, KF Aerospace at 50 and Canadians in the Battle of Britain.
Global Crossing Airlines, Inc. (GlobalX) and Canada Jetlines Ltd. announced that GlobalX has signed an agreement with GEM Global Yield LLC SCS, the private alternative investment group, to provide GlobalX with up to $100 million over a 36 month term following the previously announced business combination of GlobalX and Jetlines. Upon completion of the transaction, Jetlines will have acquired GlobalX and the resulting issuer will be named Global Crossing Airlines Inc. 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 $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 arrangements 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 of the outstanding common shares of the resulting issuer on a fully diluted basis.
“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 favourable 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,” said Joseph DaGrosa, chairman and lead investor of GlobalX.