FLYHT Aerospace Solutions Ltd. Announces Private Placement of Up to $6 Million

FLYHT Aerospace Solutions Ltd. Press Release

Calgary, Alberta (October 15, 2019) – FLYHT Aerospace Solutions Ltd., (TSX-V: FLY) (the “Company” or “FLYHT”) is pleased to announce that it has entered into a letter of engagement with Canaccord Genuity Corp. (“Canaccord Genuity” or the “Agent“), pursuant to which Canaccord Genuity, acting as agent for the Company, has agreed to offer for sale Units of the Company (the “Units”), on a “commercially reasonable efforts” private placement basis, subject to all required regulatory approvals, at a price per Unit of $1.25 (the “Issue Price”) for total gross proceeds of up to $6 million (the “Offering”). 
 
Each Unit shall consist of one common share of the Company (a “Share”) and one-half of one common share purchase warrant (each full warrant, a “Warrant”). Each Warrant shall entitle the holder thereof to acquire one Share at a price of $1.75 per Share for a period of 24 months following the closing date of the Offering (the “Closing Date”). 
 
The Company has granted the Agent an option (the “Over-Allotment Option”) to increase the Offering size by an additional 720,000 Units, for additional gross proceeds of $900,000, exercisable in whole or in part at any time for a period of up to 48 hours prior to the Closing Date.
 
In consideration for its services, Canaccord Genuity (together with any members of the selling group, if any) shall receive a fee equal to 7% of the gross proceeds of the Offering as well as agent warrants (“Agent Warrants”) in an amount equal to 7% of the aggregate number of Units sold pursuant to the Offering. Each Agent Warrant shall be exercisable for a period of 24 months following the Closing Date into one Share at a price of $1.25 per Share. 
 
The net proceeds from the Offering will be used to assist in the funding of new development programs to diversify the Company’s product offering, to expand the Company’s sales and marketing efforts in order to accelerate sales, to augment the working capital needs of the Company which have become greater due to recent business expansion and for general working capital purposes. 
 
All of the securities issued pursuant to the private placement will be subject to a hold period of 4 months plus a day from the date of issuance. Completion of the Offering is subject to the final approval of the TSX Venture Exchange.