Provided by Canada Jetlines Ltd/Globe Newswire

VANCOUVER, British Columbia, May 15, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that it has entered into a definitive subscription agreement (the “Agreement”) with InHarv Partners Ltd. (“InHarv”), on behalf of a Korean special purpose fund to be called InHarv ULCC Growth Fund (the “SPV Fund”), for a financing of $7 million (the “Principal Amount”).

InHarv is a hybrid of venture capital and private equity based in Seoul, South Korea whose strategic stance is to raise capital in South Korea for investment in cutting edge start-ups overseas. InHarv will be acting as lead & general partner for the Korean special purpose fund, and also investing as principal. The SPV Fund is to include the investment divisions of a number of leading Korean manufacturing and financial institutions as its group of limited partners. The SPV Fund will be created by InHarv to facilitate the investment into Jetlines.

Mr. Jong Chang, Founder and Chairman of InHarv, was previously Lead Partner of Booz Allen Hamilton, a global general management consultancy in the U.S., and a Senior Vice President and founding member of KBRI (now Moody’s Korea Inc.), the first credit rating agency in Seoul. Jong used to be one of the Economic Council Members for the President of South Korea, He also held positions as an independent board member of LG Chemical Co. of the LG Group based in Seoul and as an independent board member of Saint-Gabain Korea, a leading flat glass maker. Presently, Jong is the Chairman of the Board of ToolGen, Inc. a world leading DNA editing company based in Seoul Korea, and a Board Director of Verseau Therapeutics Inc. a world leading macrophage company based in Lexington, MA, USA, and of Chromis Optical Fiber Company based in Warren, NJ, USA.

Mark Morabito, Executive Chairman, commented “As we continue to advance our financing initiative, I am pleased to announce the signing of the definitive agreement with InHarv. Mr. Chang and his team are seasoned in identifying high potential start-up companies and I look forward to welcoming Mr. Chang to the Board of Directors of Jetlines after funding is complete.”

Details of the Offering

The offering (the “Offering”) will consist of 7,000 units (each, a “Unit”), with each Unit comprised of one $1,000 principal amount 10.00% senior secured convertible debenture of Jetlines (each, a “Debenture”) and 2,439.02439 variable voting share purchase warrants (each, a “Warrant”), and with each Warrant entitling the holder thereof to acquire one variable voting share of Jetlines (each, a “Warrant Share”) at a price of $0.41 per Warrant Share for a period of 36 months from the date of closing.  The Company will issue a total of 17,073,170 Warrants to the SPV Fund as part of the Units subscribed for by the SPV Fund.

The terms of the Debentures include:

• a maturity date on such date that is 36 months from the date of issuance of the Debentures (the “Maturity Date”) and the principal amount of the Debentures, together with any accrued and unpaid interest thereon, will be payable on the Maturity Date, unless earlier converted in accordance with its terms;
• each draw of the Principal Amount will accrue interest (“Interest”) from the drawdown date of such draw at the rate of 10% per annum, which Interest will be payable in cash annually on the anniversary date of the drawdown date of such draw, and on the conversion date or the Maturity Date, as the case may be;
• all or a portion of the Principal Amount outstanding is convertible into variable voting shares of the Company (each, a “Share”) at the option of the holder at a conversion price of $0.41 per Share; and
• the Debentures are subject to an origination fee of 5%, payable in Shares on each drawdown date at an issue price equal to the market price at the time of such drawdown date.

The funds will be available for drawdown based on the satisfaction of certain conditions. $4.9 million (70%) of the proceeds shall be available for drawdown by the Company once it receives from the Canada Transportation Agency an order allowing it to sell tickets for airline travel and the Company has completed additional financings for gross proceeds of $33 million. Jetlines intends to apply for this order in time to receive it in September 2019, approximately three months ahead of first flight. The remaining $2.1 million (30%) of the proceeds shall be available for drawdown upon the receipt by the Company’s subsidiary, Jetlines Operations, of its air operator certificate from Transport Canada.

The obligation of the Company to repay the Principal Amount and all unpaid Interest thereon to the SPV Fund will be secured by a security interest granted by Jetlines to the SPV Fund over all of the Company’s present and after-acquired property pursuant to a general security agreement to be entered into.

The SPV Fund is an arm’s length party to the Company and it is expected that the SPV Fund will become an insider of the Company on full conversion of the Principal Amount outstanding under the Debentures. Finders’ fees may be payable in connection with the Offering in accordance with the policies of the TSX Venture Exchange.

The Company will also grant the SPV Fund certain rights in connection with the closing of the Offering that will govern aspects of the relationship between the parties. These include the right of the SPV Fund to appoint two Board members, one of which must be a Canadian resident, and the grant of a pro-rata right to the SPV Fund to participate in future financings.

The net proceeds of the Offering will be used to further the business objectives of Jetlines in launching an ultra-low cost airline carrier in Canada, including advancing the licensing process, augmenting the leadership team with operations and commercial personnel, branding and marketing activities, as well as advance internet, digital media and IT systems initiatives.

The closing of the Offering is conditional the satisfaction of conditions to closing that will be contained in the Subscription Agreement. These conditions will include, among other things, approval of the TSX Venture Exchange for the Offering and the receipt of all other necessary consents, approvals and authorizations required by either party.

Provided by Jetlines Airlines Ltd/GlobeNewswire

VANCOUVER, British Columbia, April 30, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that SmartLynx Airlines SIA (“SmartLynx”) and Jetlines have amended the escrow release conditions associated with the $7.5 million subscription receipt financing that was completed in December 2018 (the “SmartLynx Offering”). The escrow release conditions have been amended to match the funding conditions that are subject to the pending financing with the Korean special purpose fund led and established by InHarv Partners Ltd. (“InHarv”) (see press release of March 28, 2019 for further details). The amended escrow release conditions will provide funds to Jetlines at an earlier date than previously agreed.

Under the amended terms with SmartLynx, the gross proceeds of the SmartLynx Offering will be released after Jetlines achieves certain milestones as described below.   $5.25 million (70%) of the proceeds shall be released upon the Company raising additional funds (the “Funding Milestone”) from a subsequent financing by June 30, 2019 (such completion date subject to waiver by SmartLynx). The Funding Milestone will be calculated by adding the amount of $3.85 million realized through the exercise of previously issued warrants since November 1, 2018  and the final amount committed under the InHarv financing at closing, and subtracting that total number from $40 million. In addition, the Company will be required to receive from the Canada Transportation Agency an order allowing it to sell tickets for airline travel. Jetlines intends to apply for this order in time to receive it in September 2019, approximately three months ahead of first flight.

The remaining $2.25 million (30%) of the proceeds shall be released upon the receipt by Jetlines Operations of its air operator certificate from Transport Canada.

Executive Chairman, Mark Morabito stated, “I would like to thank the SmartLynx group for their continued support of Jetlines. This amendment follows on their recent agreement to lease two Airbus A320 aircraft to Jetlines in order to allow for its planned December 17, 2019 start-up date. These amended escrow release terms will provide significant additional operational flexibility as funds will be available at an earlier date prior to start of operations and will allow Jetlines to better manage its capital. The terms will also be consistent with the funding conditions associated with the InHarv financing and together will provide the additional certainty of funding to the remaining investors that Jetlines is targeting to complete the remaining financing to launch airline operations.”

Provided by Canadian Jetlines

March 28, 2019 – Canada Jetlines Ltd. (TSX-V: JET) (the “Company” or“Jetlines”) is pleased to announce that it has entered into a letter of intent (the “LOI”) with a Korean special purpose fund led and established by InHarv Partners Ltd. (“InHarv”) for a financing of up to $14 million (the “Offering”). InHarv is a hybrid of venture capital and private equity based in Seoul, South Korea whose strategic stance is to raise capital in South Korea for investment in cutting edge start-ups overseas. InHarv will be acting as lead & general partner for the Korean special purpose fund, and also investing as principal. The Korean special purpose fund includes the investment divisions of a number of leading Korean manufacturing and financial institutions as its group of limited partners. A special purpose vehicle (the “SPV Fund”) will be created by InHarv to facilitate the investment into Jetlines.

“This financing transaction with the Korean SPV Fund is an important pillar of Jetlines’ financing plan. Combined with the SmartLynx financing completed at the end of 2018 and $8.8m in proceeds received through the exercise of previously issued share purchase warrants, Jetlines has raised a significant portion of the funds that it needs to launch airline operations. We intend to raise the balance of the proceeds through additional debt and equity financings in the near term and negotiations are well advanced in this regard” commented Mark Morabito, Executive Chairman of Jetlines.

Javier Suarez, CEO of Jetlines added “There is significant penetration of ULCC airlines in South Korea. They understand the value proposition associated with these types of airlines and the returns Korean local investors have obtained investing in these airlines. The extensive due diligence that the Korean SVP Fund have conducted to date provides further validation of the need for a true ULCC in Canada and Jetlines’ business plan.”

Provided by Canada Jetlines

VANCOUVER, British Columbia, March 14, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V) (JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to provide an update on recent operational developments related to Jetlines’ build out in preparation for a targeted launch later this year.

Aircraft Maintenance and Preparation for Delivery

Jetlines signed an agreement with AKKA Technologies (AKA: EPA) for the paint livery engineering drawings, stencils and placards. AKKA ranks as the European leader in engineering consulting and R&D services in mobility and carries a strong presence globally. AKKA is also accomplishing the cabin interior reconfiguration Engineering through a direct contract with the aircraft lessor.

Jetlines signed an agreement with Flightcraft Maintenance Services Ltd. (“FMS”) in Winnipeg for the aircraft reconfigurations. FMS has been engaged to install the 180 Passenger configuration with new ACRO Series 3 Superlight ST+ seats, new carpets and convert the cargo holds to bulk load configuration. With over 20 years in the business, FMS has established itself internationally as a reliable and consistent aircraft maintenance and overhaul facility. FMS is Transport Canada and EASA certified, and is internationally recognized as a leader in global Maintenance, Repair, and Operations (MRO) services.

Jetlines has reached an agreement with TRAX, the leading global provider of aviation maintenance mobile and cloud products, for their maintenance software and services. TRAX has become the best-selling aircraft fleet management software on the market today by providing a robust suite of products and services to over 170 customers worldwide. TRAX’s products provide the means to manage and maintain all information generated and allows for complete information flow with leading-edge tools for customization that will enable Jetlines to maintain an efficient process and tight cost control as a result.

Phil Larsen, VP Maintenance commented, “We are very pleased to have these highly recognized suppliers working with us for the launch of Jetlines. With AKKA Technologies doing the engineering and kit provisioning, and Flightcraft accomplishing the reconfiguration and maintenance, we can be assured a great high-quality product.”

Integrated Flight Operations Software – SysAIO

Jetlines also announces an agreement with SysAIO Inc., a Canadian company that provides a series of high-end online applications through a SaaS (software as a service) model. SysAIO will be providing Jetlines with a cutting-edge online aviation product, AvAIO (Aviation – All-In-One). AvAIO is an enterprise level aviation system that provides cost-effective operations and crewing solutions. SysAIO was selected by Jetlines for their experience in working with start-ups and their abilities to meet the challenging technical aspects of the aviation industry. Jetlines selected SysAIO due the unique flexibility it provides, allowing a smaller airline to customize the software to their individual needs as it relates to crew scheduling, reporting tools, and customization of the Safety Management System (SMS) modules, rather than conforming to legacy systems that often prescribe higher costs.

About Canada Jetlines Ltd.

Canada Jetlines is set to become Canada’s first true Ultra-Low-Cost Carrier (ULCC) airline, with plans to operate flights across Canada and provide non-stop service from Canada to the United States, Mexico and the Caribbean. The Company plans to commence operations with the Airbus A320 fleet, the most widely used aircraft for ultra-low-cost carriers worldwide. Jetlines is led by a board and management team with extensive experience and expertise in low-cost airlines, start-ups and capital markets. The Company was granted an unprecedented exemption from the Government of Canada that will permit it to conduct domestic air services while having up to 49% foreign voting interests.

Jetlines ability to launch airline service remains subject to the completion of the airline licensing process, the receipt of applicable regulatory approvals and the completion of financing.

Provided by Canada Jetlines/Globe Newswire

VANCOUVER, British Columbia, Feb. 26, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V) (JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that it has signed an agreement with Elavon, Inc., a wholly owned subsidiary of U.S. Bancorp (NYSE: USB), as its payment processing partner of choice.

Elavon provides end-to-end payment processing solutions and services to more than 1.3 million customers in the United States, Europe, Canada, Mexico, and Puerto Rico, and is a leading payments provider to airlines around the world.

Elavon will provide Jetlines’ customers with a secure and easy-to-use payment processing platform. Its omnichannel payment solutions will allow Jetlines’ future passengers to pay however they want whether its in-person, online, on the phone, or on their mobile device. Elavon also offers top-tier security controls to protect Jetlines and its future passengers’ data and privacy. Elavon’s platform will prevent fraud through its advanced and proprietary risk management tools, fraud detection solutions, and managed chargeback services.

Jetlines Chief Financial Officer, Carlo Valente, commented, “Elavon and U.S. Bank have a track record of delivering reliable, innovative, and secure payment solutions. Elavon is consistently rated among the top global payment providers and offers secure payments solutions that comply with industry standards. With data breaches becoming more and more common today, security of customer payments is crucial while also reducing the cost of payment card industry (PCI) data compliance. Elavon meets these needs with its award-winning, international processing platform and global payment solutions.”

“We are honored Jetlines named us their payments processing partner of choice,” said Brett Turner, head of airline acquiring, Elavon. “We’ve been processing payments for the airline industry since 1989, serving global and regional carriers of all sizes. Adding Jetlines to our portfolio of airline customers deepens our commitment to the Canadian market.”

About Elavon, Inc.

Elavon, a wholly owned subsidiary of U.S. Bancorp (NYSE: USB), provides end-to-end payment processing solutions and services to more than 1.3 million customers in the United States, Europe, Canada, Mexico, and Puerto Rico. As the leading provider for airlines and a top five provider in hospitality, healthcare, retail, and public sector/education, Elavon’s innovative payment solutions are designed to solve pain points for businesses from small to enterprise-sized.

About Canada Jetlines Ltd.

Canada Jetlines is set to become Canada’s first true Ultra-Low-Cost Carrier (ULCC) airline, with plans to operate flights across Canada and provide non-stop service from Canada to the United States, Mexico and the Caribbean. The Company plans to commence operations with the Airbus A320 fleet, the most widely used aircraft for ultra-low-cost carriers worldwide. Jetlines is led by a board and management team with extensive experience and expertise in low-cost airlines, start-ups and capital markets. The Company was granted an unprecedented exemption from the Government of Canada that will permit it to conduct domestic air services while having up to 49% foreign voting interests.

For more information on Jetlines, please visit our website at www.jetlines.ca.

Provided by Canada Jetlines

VANCOUVER, British Columbia, Feb. 19, 2019 – Canada Jetlines Ltd. (JET: TSX-V) (JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to provide an update on recent commercial developments related to Jetlines’ build out in preparation for launch.

Distribution

Jetlines has reached agreements with two companies to supplement its approach to selling tickets directly through the Jetlines website.

Jetlines has signed an agreement with Travel Fusion, a leading online travel content aggregator and innovator of Direct Connect distribution solutions. Travel Fusion operates the world’s largest Direct Connect distribution and payment platform, directly linking hundreds of travel suppliers to Online Travel Agencies, online (Corporate) Booking Tools, Travel Search and Mobile services. Travel Fusion aggregates over 220 low cost carriers, full service carriers, and rail operators. Travel Fusion’s proven and scalable architecture enables fast adaptability to changes in the industry and includes full support for ancillary services.

Jetlines will enter into an agreement with Google Flights, an industry leading flight search engine. Google Flights allows you to book flights from more than 300 airline and online travel agency partners. It has the built-in capability to book one-way, round-trip, and multi-city tickets, and includes functionalities such as an interactive calendar, price graphs to find the best fares, and the capability to filter flight searches by cabin class, airlines, and number of stops.

Ancillaries

Jetlines has reached an agreement with CarTrawler, a global leader in end-to-end travel technology that will give Jetlines’ future passengers access to a suite of ground transportation solutions including car rental, bus, rail, chauffeur and taxi transfers directly from the Jetlines’ website. CarTrawler’s platform is used by over 100 different international airlines including Ryanair, Virgin Australia, AirAsia, FlyDubai and Vueling by connecting international car rental brands, buses, chauffeurs and taxi transfers from over 2,000 agents in 50,000 locations.

Jetlines is entering into an agreement with Booking.com, one of the largest e-commerce companies in the world. The Booking.com website and mobile application is available in over 40 languages, and offers over 28 million listings world-wide. Jetlines’ customers will be able to book their ideal accommodation quickly and easily through Jetlines’ website without incurring any added fees. Booking.com is also supported by a dedicated team of customer support specialists that work to continuously improve customer experience and the ease of transactions.

E-Commerce & Marketing

While Jetlines and the marketing agency of record, Cossette, continue to work on the comprehensive marketing plan for 2019, Jetlines has entered into a partnership with Salesforce to leverage their digital marketing and CRM services and expertise. Jetlines’ ability to operate through a clean-sheet design allowing it to bring technology and personalization to the forefront of the customer experience is a significant opportunity for Jetlines. Salesforce’s innovative data-driven approach will allow Jetlines to best utilize the information that its future passengers share and to optimize sales and marketing initiatives.

“We are determined to make travel easy and affordable to Canadians in a very open and honest way. We want to give our future customers the optionality of when and how they purchase their Jetlines’ tickets, and what ancillary products or services they may want to add when travelling with us,” commented Jordi Porcel, Chief Sales, Marketing, and Customer Experience Officer. “We are committed to providing a positive experience for our future passengers and that is reflected in the agreements we are reaching with key companies that are leaders in their respective industries,” Mr. Porcel added.

Provided by Canada Jetlines

February 11, 2019 – Canada Jetlines Ltd. (TSX-V: JET) the “Company” or “Jetlines”) is pleased to announce that it intends to offer direct flights from Aéroport Montréal Saint-Hubert Longueuil (“Montreal Saint Hubert Airport” or the “airport”) to several cities in Canada including cities in Quebec, as well as US destinations including Florida and New York.

Montreal Saint Hubert Airport is being expanded as part of a plan to position itself as a low-cost airport serving the Montérégie region of Quebec and Montréal. The airport’s location is closer to Montréal’s business and leisure core than Montréal’s main airport, Pierre Elliott Trudeau International Airport. Montreal Saint Hubert Airport is expected to be able to support ULCC airlines like Jetlines as early as the end of next year. The airport recently upgraded its runway, a project that received support from the federal government, who injected $13 million into the project. Montreal Saint-Hubert also has plans to build a new passenger terminal building. 

Javier Suarez, CEO, stated “we are thrilled to announce routes we plan to fly in the future. We fully support the airport’s vision of building a low-cost secondary airport for the Montréal region, and we are looking forward to delivering ultra-low fares to our passengers. Our low fares should encourage people from Montréal and the surrounding areas to travel more often. Driven by these low fares, Montréal should experience an increase in the number of tourists and visitors it receives. Our relationship with the airport is important for us to be able to extend Jetlines’ reach in Eastern Canada, and we are pleased to have them as a partner.”  

“Jetlines is committed to becoming Canada’s first true ultra-low cost carrier. It’s not fair for Canadians to have to consistently overpay for their air travel, whether be it to travel for leisure, or to visit their friends and family. Jetlines is here to put an end to this. Our partnership with Montreal Saint-Hubert airport is a crucial milestone in our vision for air travel in Canada, as well as for our long-term plans”, added Mark Morabito, Executive Chairman. 

“We are particularly pleased with Jetlines’ announcement today. Offering a low cost alternative for air service to other cities in Quebec, Canada and the United States is in direct alignment with our vision for the development of the airport.  Florida is a favourite destination for Quebecers and this new service will help us repatriate the exodus of Canadians flying to the United States from border airports such as those in Plattsburgh and Burlington. And, this announcement certainly validates our request to Minister Garneau for assistance regarding Canadian Air Transport Security Authority (CATSA) services and the need to re-examine government agreements signed decades ago that currently limit our access to these markets. We are currently examining the use of a temporary facility so that we may accelerate this service offering”, said Jane Foyle, General Manager of DASH-L, the non-profit organization that manages the airport.

The Company’s ability to service this airport is subject to the completion of the airline licensing process and the receipt of applicable regulatory approvals.

Provided by Canada Jetlines

February 7, 2019

Canada Jetlines Ltd. (TSX-V: JET) (the “Company” or “Jetlines”) is pleased to announce that it has chosen Vancouver International Airport (YVR) to be its home airport and primary base of operations when it begins flight operations targeted for later this year. Jetlines has filed and received confirmation from YVR that all airport slots needed to operate their initial network using their first two Airbus A320 aircraft will be available.

Jetlines selected YVR as their future base for operations due to it being the second busiest airport in Canada, serving more than 25.9 million passengers in 2018. It is also the busiest airport in British Columbia and the airport with the largest catchment area. The airport has more than 2.5 million people living less than 30 minutes drive from it. As well as it being the closest airport to Vancouver’s city center, the airport is also extremely well connected to the city by transit with a rapid transit rail.

In addition to the desirable location and facilities, Jetlines was attracted to YVR due to their competitive rates and charges. The airport’s ConnectYVR program provides airlines a standard rate structure for landing and terminal fees. This program rewards airlines for efficiency and growing their services at YVR providing further incentive for Jetlines to build their base of operations out of Vancouver.

CEO Javier Suarez stated “I am extremely excited to be able to use Vancouver International Airport as our primary base of operations once we launch. The Greater Vancouver area population, cost to operate from the airport, and transit accessibility, linked with the enormous tourist attraction that Vancouver has, provides Jetlines with a massive business opportunity. Having launched more than 300 routes in my career with most of them out of primary airports, I have no doubt that the Vancouver Airport will offer Jetlines the opportunity to launch and profitably operate a large number of routes.”

“We welcome the news that Jetlines is planning to use YVR as their base of operations once they launch. It is great to hear that this Canadian-operated airline is making positive progress to begin offering service. We are excited that Jetlines intends to offer flights from YVR across Canada and to several sun destinations as this will provide added choice for our passengers in the future,” said Anne Murray, Vice President, Airline Business Development and Public Affairs, Vancouver Airport Authority. 

The Company’s ability to service this airport is subject to the completion of the airline licensing process and the receipt of applicable regulatory approvals.