Canada Jetlines Operations Ltd. (NEO: CJET) (“Canada Jetlines”) the new, all-Canadian, leisure carrier, announced that due to support from existing shareholder Broadway Capital Management, a New York-based value manager, it will increase its previously announced non-brokered private placement to raise a total of $3,350,000 (the “Offering”). The Offering consists of units issued at $0.35 per unit (each a “Unit”). Each Unit consists of one common share (each a “Share”) and one half of one warrant (each whole warrant a “Warrant”). Each Warrant entitles the holder thereof to purchase an additional Share for a period of 48 months after closing at a price of $0.50 per Warrant Share during the first two years after issuance; and $0.65 per Warrant Share during the third and fourth year after issuance.
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 closing of the Offering is subject to customary closing conditions, including the receipt of the approval of the Neo Exchange Inc.