MIAMI, Jan. 30, 2023 -- Global Crossing Airlines Group, Inc. (JET: NEO; JET.B: NEO; JETMF: OTCQB) (the “Company” or “GlobalX”) is pleased to announce it has secured an up to US$5.0 million loan (the “loan”) with a key long-term investor to provide working capital and additional liquidity to support GlobalX’s rapidly growing operations.
“GlobalX is fortunate to have a committed group of investors who continue to fund and support the expansion of our operating fleet. We took possession Tuesday, January 26th our first freighter and expect to take delivery of an additional three aircrafts over the next 45 days, and this facility will give us the flexibility needed to continue our investments in crews, aircraft and operating systems required to deliver our targeted 2023 revenue,” said Ed Wegel, Chair and CEO.
The Loan is a six-month facility that will be funded in two tranches of $2.5M each. The first tranche will be advanced within one business day and the second tranche will be advanced after the Company delivers a draw down notice, but subject to the lender receiving internal approval for the second tranche. The Loan is unsecured, is not convertible, no warrants and will bear interest at the rate of 20% per annum, accruing monthly and payable upon maturity.
The net proceeds of the Loan will be used to further the business objectives of the Company and to secure additional passenger and freighter Aircraft for charter operations that are expected to be delivered in Q1 2023.