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Toronto, Ontario – (Newsfile Corp. – August 9, 2021) – Canada Jetlines Operations Ltd. (the “Company” or “Overhead lines“) announces that it has closed its previously announced private placement without intermediary (the”OfferDue to investor demand, the Company increased the size of the placement by $ 5 million and closed with final gross proceeds of $ 6,599,064.80. The placement consisted of 16,497,662 units issued to $ 0.40 per unit (each one “Unity“). Each unit is made up, depending on the place of residence of the subscriber, of one common share with voting rights or one share with variable voting rights (each a”To share“) and a half term (each full voucher a”To guarantee“). Each warrant entitles its holder to purchase one additional share for $ 0.70 for a period of 24 months after closing. Canadian subscribers received common voting shares and subscribers who were not. non-Canadians received variable voting shares The Company also issued 1,125,328 warrants to finders as part of a finder commission for certain subscribers who participated in the Offer.

The Company intends to use the net proceeds of the offering to advance the licensing process for Canadian airlines and for general corporate and working capital purposes.

To demonstrate their continued support for the Company, certain directors and officers of the Company participated in the offering and acquired 610,500 units for proceeds of $ 244,200. Such participation is considered to be a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101”). The related party transaction will be exempt from minority approval, information circular and formal valuation requirements in accordance with the exemptions contained in sections 5.5 (a) and 5.7 (1) (a) of Regulation 61- 101, because neither the fair market value of the gross securities to be issued under the offering nor the consideration payable by insiders will exceed 25% of the market capitalization of the Company. The Company has not filed a material change report with respect to this financing more than 21 days before the planned closing of the offering as required by NI 61-101 since the details of the involvement of the related parties of the Company have not been settled only shortly before the closing of the Offer and the Company wished to close quickly for good commercial reasons. The units that will be acquired by the related parties were acquired pursuant to an exemption from the prospectus requirement set out in section 2.24 of Regulation 45-106.

This press release does not constitute an offer to sell securities in the United States. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold in the United States absent registration in the United States. United States or an applicable exemption from registration requirements in the United States. .

About Canada Jetlines

Canada Jetlines is a low-cost Canadian carrier that intends to begin operations, pending CTA approval, as a tour operator with flights to popular sun destinations in the United States and Mexico. Canada Jetlines intends to operate a highly efficient fleet of Airbus A320 aircraft providing safe, reliable, user-friendly and consistent service to Canadians.

For more information on all of Canada Jetlines, please visit www.jetlines.ca.

For more information please contact:

Eddy Doyle
Chief Executive Officer
Canada Jetlines Operations Ltd.
Email: [email protected]

Caution regarding forward-looking information

This press release contains “forward-looking information” regarding anticipated developments and events that may occur in the future. Forward-looking information contained in this press release includes, without limitation, the use of the proceeds of the Offer, the Company’s intention to fly as a low cost airline, the destinations of its planned flights and the completion of the CTA approval process. and the business of Jetlines.

In some cases, forward-looking information may be identified by the use of words such as “plans”, “expects”, “budget”, “planned”, “estimates”, “forecasts”, “intentions”, ” anticipates “or” or variations of these words and phrases or statements that certain actions, events or results “might”, “could”, “would”, “could” or “would”, “occur” or “will be achieved” suggesting future results, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements regarding future events or performance. The forward-looking information contained in this press release is based on certain factors and assumptions regarding, among other things, the receipt of funding to start airline operations; the accuracy, reliability and success of Jetlines’ business model; timely receipt of the areas of jurisdictions where Jetlines will operate or operate; the impact of competition and the competitive response to Jetlines’ business strategy; and the availability of aircraft. Although the Company considers these assumptions to be reasonable on the basis of the information currently available to it, they may prove to be inaccurate.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by the companies. forward-looking information. These factors include risks related to the ability to obtain financing on acceptable terms, the impact of general economic conditions, domestic and international airline industry conditions, the failure of the Company to enter into a definitive agreement for acquiring the Airplane, the impact of the uncertainty created by COVID-19, future relations with shareholders, volatility in fuel prices, increased operating costs, terrorism, pandemics, natural disasters, currency fluctuations, rates of interest, risks specific to the airline industry, ability of management to implement Jetlines’ operational strategy, ability to attract qualified managers and personnel, labor disputes, regulatory risks, including risks related to the acquisition of the necessary licenses and permits, and the additional risks identified in the “Risk Factors” section of the Company’s reports and records with applicable Canadian securities regulators. Although the Company has attempted to identify important factors which could cause actual results to differ materially from those described in forward-looking information, other factors may cause results not to be as anticipated, estimated or planned. Therefore, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release. Except as required by applicable securities laws, the Company assumes no obligation to publicly update any forward-looking information.

DO NOT RELEASE IN THE UNITED STATES
OR DISTRIBUTION TO US NEWSWIRE SERVICES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/92526

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