Canada Jetlines, the fledgling budget airline of Canada has announced it has bagged itself another loan. Last week the firm said it has entered into a non-convertible term Loan Agreement for a $1,500,000 loan from Roosheila Group which is a holding company for Reg Christian, a director of the Company and travel industry veteran.
The terms of the Loan include:The Loan will be advanced in a single tranche of $1,500,000 (“First Tranche”) following Neo Exchange Inc. approval;the Loan bears interest at the rate of 7.95% per annum and has a maturity date of 60 months from the date of advance;principal and interest amounts are payable in equal monthly installments for the term of the Loan plus an additional annual 10% principal repayment;no shares are issuable in connection with the Loan;the Lender is granted a Board nomination right to nominate an independent director for the term of the Loan;the Borrower shall pay the document closing costs of the Lender; andthe Loan is secured with a subordinate security interest against the Company’s credit card processor holdback funds.The Company intends to use the net proceeds of the Offering and the Loan for aircraft acquisition, general corporate and working capital purposes.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
