Canada Jetlines Secures CAD 13.5 Million Investment for Fleet Expansion

Canadian leisure airline Canada Jetlines is set to raise CAD 13.5 million through a non-brokered private placement with Jetstream Aviation Inc., paving the way for the investor to hold a controlling stake of approximately 50% in the airline. The funding will be utilized for aircraft acquisitions and general corporate and working capital purposes, aligning with Canada Jetlines’ expansion plans.

Canada Jetlines focuses on serving high-demand, sunny destinations and currently operates three leased A320-200s. The airline aims to significantly expand its fleet to 15 aircraft by 2025, positioning itself as a key player in the leisure travel segment.

The private placement will be executed in three tranches, with the first tranche involving the acquisition of 19,598,017 shares by Jetstream Aviation, representing approximately 19.9% of Canada Jetlines, for CAD 3.3 million. The subsequent tranches, constituting 15% each, will be subject to shareholder approval, ultimately resulting in Jetstream holding around 50% of the airline’s shares.

The second tranche involves the purchase of 29,416,635 shares for CAD 5 million, followed by the third tranche, comprising another 29,416,635 shares for the same amount. Upon completion of the offering, Jetstream Aviation will possess 78,431,287 shares in Canada Jetlines.

As part of the agreement, Jetstream Aviation will have the opportunity to appoint two directors to Canada Jetlines’ board. The completion of the private placement is contingent upon customary closing conditions and approval from the exchange.

This substantial investment positions Canada Jetlines for significant growth and underscores the investor’s confidence in the airline’s expansion strategy. Stay tuned for further developments as Canada Jetlines advances its fleet expansion plans and strengthens its presence in the leisure travel market.