Jetlines Announces Business Combination with Global Crossing Airlines - Seite 2

Mr. Mark Morabito commented, “While Jetlines made significant progress in building out a management team, advancing the airline licensing process, establishing systems, securing routes and obtaining financing commitments, ultimately current market conditions necessitated a change in strategy. The GLOBALX plan preserves Jetlines strategy long term and provides a more immediate opportunity to commence airline operations. I am resigning from Jetlines at this time in order to facilitate the GLOBALX transaction and its plans to restructure management.”

The Transaction is subject to the execution of a definitive transaction documents, approval of the TSX Venture Exchange (the “Exchange”), approval of the Jetlines and GLOBALX shareholders and other conditions customary for a transaction of this nature. There can be no assurance that the Transaction will be completed as proposed or at all.

Transaction Highlights

LOI

The following are the highlights of the terms and conditions of the LOI:

• The Transaction is subject to the parties executing definitive transaction documents on or before January 30, 2020 (the “Transaction Documents”) and the final structure of the Transaction is to be determined upon the receipt of securities, tax and financial advice.

• GLOBALX has outstanding the following securities: 500 shares, nil warrants and nil stock options.

• The exchange ratio for the Transaction will (subject to adjustment for the Bridge Loan (defined below)) result in existing shareholders of Jetlines holding 49% of the common and variable voting shares of the Resulting Issuer (“Resulting Issuer Shares”) and shareholders of GLOBALX holding 51% of the Resulting Issuer Shares.     

• The Transaction is subject to the following key conditions:

• • the parties will execute the Transaction Documents by January 30, 2020;

• • Jetlines will consolidate its share capital of a 10:1 basis and change its name to Global Crossing Airlines Group;

• • the parties will complete due diligence investigations, each to their own satisfaction, prior to executing the Transaction Documents;

• • GLOBALX shall designate a proposed team of officers, directors and board committee members of the Resulting Issuer which will be set out in the Transaction Documents;

• • the Transaction will have received approval of the Exchange and all necessary regulatory, corporate and shareholder approvals; and                                       

• • receipt of a report of a sponsor in respect of the Transaction or waiver from the sponsorship requirement by the Exchange.

• GLOBALX will provide Jetlines with a secured bridge loan for up to $300,000 (the “Bridge Loan”). The Bridge Loan will be advanced in tranches of $100,000 based on a budget agreed to between Jetlines and GLOBALX. Each $100,000 advanced will increase the ownership interest of GLOBALX shareholders in the resulting issuer by approximately 0.56%. If the full $300,000 of the Bridge Loan is advanced, the percentage interest of Jetlines shareholders and GLOBALX shareholders in the Resulting Issuer shall be 47.35% and 52.65% respectively.