Category: Canada Jetlines

Jetlines Announces AGM Results

Provided by Canada Jetlines Ltd/CNW

VANCOUVER, British Columbia, June 27, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) reports that the nominees listed in the management information circular for the 2019 Annual General and Special Meeting of shareholders were elected as directors of Jetlines. Detailed results of the vote for the election of directors held at the Annual General and Special Meeting on June 26, 2019 in Vancouver, B.C., are set out below:

 

 
% Votes For% Votes Withheld
Mark J. Morabito99.45%0.55%
Deborah Robinson99.63%0.37%
Réjean Bourque99.37%0.63%
Jason Grant99.57%0.43%
Saad Hammad99.13%0.87%
Tony Lefebvre99.11%0.89%
Alan Bird97.61%2.39%
Zygimantas Surintas97.22%2.78%

Shareholders at the Annual General and Special Meeting also approved the appointment of Jetlines’ auditors, the SmartLynx Private Placement, the InHarv Private Placement, the Amended Articles and By-Laws, the Amended Stock Option Plan, the Amended Restricted Share Unit Plan and the Amended Performance Share Unit Plan.

Jetlines Appoints ULCC Veteran as Chief Operating Officer

Provided by Canada Jetlines Ltd/Globe Newswire

VANCOUVER, British Columbia, June 25, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V) (the “Company” or “Jetlines”) is pleased to announce the appointment of Mr. Jyri Strandman as Chief Operating Officer, effective July 1, 2019. Jyri is a seasoned aviation veteran with over 30 years experience in the aviation industry and has held senior positions with ultra-low cost carrier (ULCC) leader Spirit Airlines.

“I am very pleased that Jyri has agreed to join Jetlines full-time as Chief Operating Officer. We are lucky to have access to someone of his caliber and experience. Having held progressively senior positions with one of the market leaders, Jyri truly understands the ultra-low cost model and will assist Jetlines with its goal of being the lowest cost operator in Canada,” commented Javier Suarez, CEO of Jetlines.

Jyri comments; “It is a great privilege to lead our capable operations teams from buildup to actual start of operations, deploying high degree of fully integrated automation. It frees up our passionate team members to serve our flyers genuinely, thoughtfully and kindly. While our product is distinctly fun and light-hearted, we are fiercely revved up and committed to liberating Canadians from overpriced air travel. We look forward to sharing our contagiously energetic and positive brand experience in tangible ways. This is not a job, but a mission; to provide a real value proposal to the millions, so they can reach and experience new destinations.”

Jyri most recently held the position of COO at GoAir, an Indian low cost carrier. As the Accountable Manager, he was responsible for operational control, regulatory oversight and the operations departments of the airline; Maintenance and Engineering, Airport Operations, Flight and Inflight Operations, Rostering, Dispatch and Safety.

Prior to GoAir, Jyri held progressively senior roles with Spirit Airlines, the leading ULCC in the US, the Caribbean and Latin America. He carried dual roles as Vice President of Flight Operations and Director of Operations, responsible for operational control and regulatory oversight of the airline, including all the regulatory training programs and FAA relationship. Under Jyri’s leadership, the operational teams successfully introduced 76 additional Airbus A320 family aircraft, including the first Sharklet equipped A320 and the first North American A320 neo. Prior to these roles, he served as the Director, Flight Training and Standards, leading the redesign of pilot training programs and new manual sets, both creating safety, functional flexibility and efficiency in the operational environment.

His prior 20 years of experience include increasing responsibility in training and operations roles at Virgin America and American Eagle Airlines. Jyri is a highly experienced captain, training and check pilot, and pilot examiner on the Airbus A320 family, also having served in the same capacities in many other aircraft with over 12 400 hours of flight time.

In connection with his appointment, Mr. Strandman will receive a grant of 500,000 Restricted Share Units (“RSUs”). The RSUs vest over a three-year period from the date of grant, with one third vesting at the end of each year during the three-year period.

Jetlines’ Bold New Brand Digs at the Duopoly and Positions to be The People’s Champion

Provided by Canada Jetlines Ltd/Globe Newswire

VANCOUVER, British Columbia, June 18, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce a new and playfully provocative brand identity to serve and stand up for Canadians nationwide. The rebranding comes in preparation for commercial launch targeted for December 17, 2019.

Canadians pay among the highest airfares in the world. The recently announced intent to acquire Air Transat by Air Canada, as well as the sale of WestJet to Onex will only reduce competition and increase prices further. Consumers are rightfully frustrated and fed up.

The timing couldn’t be better for Jetlines. With the intent of being in the air by mid-December, the Company has developed a cheeky, rebellious identity system, as well as a brand promise anchored in the unapologetic and honest truth: “Flying sucks less when you pay less”

Jetlines is firmly principled to offer the lowest airfares in Canada. Because Canadians should have the right to affordable travel. Because everyone deserves an airline that flies for them. Because any other way is a complete rip-off. Of course, flying will still suck. There’s not much anyone can do about manspreading seatmates or tiny toilet stalls. But it will suck less when you pay less.

Working with Cossette, the new identity system is authentic, accessible and deliberately distinct from the expensive goliath incumbents in Canada. The logo incorporates a face with a knowing smirk created from an upside-down plane. It includes an additional suite of expressive faces to capture every emotion of travel. The new system will cover every touchpoint of the brand experience from the livery to uniforms to signature luggage and humourous airsickness bags.

“Jetlines is fighting for Canadians by creating competition and rebelling against Canadian ultra high airfares. Our new brand promise and design reflect our core philosophy of pushing back against the status quo and giving Canadian travellers a brand that empowers them to make their own decisions,” noted Javier Suarez, CEO of Canada Jetlines. “I would like to thank the entire Jetlines commercial team for building such a strong brand identity that reflects our passion and values, as well as extend my most sincere gratitude to our partner, Cossette, for all of their hard work and raw talent that has brought us here today.”

Jetlines Announces Granting of Slots at Vancouver International Airport

Provided by Canada Jetlines Ltd./Globe Newswire

VANCOUVER, British Columbia, June 12, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that it has been granted slots at Vancouver International Airport (YVR) to operate its first Winter Schedule. This announcement follows Jetlines’ February 7, 2019 news release announcing YVR as its home airport and primary base of operations when the Company intends to launch operations in December this year.

The slots will permit Jetlines to operate up to ten flights per day and over 1,000 flights during the first winter season from December 17, 2019 to March 28, 2020 as the Company plans to grow commercial operations and offer service in time for the upcoming winter holiday season. The initial two Airbus A320 aircraft that Jetlines has secured through its partnership with SmartLynx will be parked at YVR airport nightly.

Jetlines CEO, Javier Suarez, commented, “I am excited to share that all slots to operate our winter schedule have been awarded. It is significant for Jetlines as we work to commence operations out of Vancouver International Airport. The Airport operates at a very high capacity in the winter season, as travellers plan trips to see family and friends, or to go on a vacation. These slots will allow us to fly our first passengers for these special occasions at incredibly low fares – at a price point that most Canadians have not had the opportunity to fly at.”

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.

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

Jetlines Provides Update on Financing with Korean Special Purpose Fund and Annual General Meeting Matters

Provided by Canada Jetlines Ltd/Globe Newswire

VANCOUVER, British Columbia, June 06, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to provide an update on the status of the $7 million financing (the “InHarv Offering”) with InHarv Partners Ltd. (“InHarv”), on behalf of InHarv ULCC Growth. The TSX Venture Exchange (“TSXV”) is requiring that the Company obtain shareholder approval for the Offering. The Company has submitted the InHarv Offering for shareholder approval at its upcoming Annual General and Special Meeting scheduled for Wednesday, June 26, 2019 (the “AGM”). Assuming shareholder approval for the InHarv Offering, InHarv and the Company intend to close the InHarv Offering as soon as possible after the AGM. For further information regarding the InHarv Offering please refer to the Company’s press release dated March 28, 2019 and May 15, 2019, or the Information Circular (defined below).

AGM Details

The AGM will be held at Fasken Martineau DuMoulin LLP located at 2900 – 550 Burrard Street, Vancouver, BC Canada, V6C 0A3 on Wednesday, June 26, 2019 at 10:00 a.m. (Vancouver Time). In addition to the approval of the InHarv Offering, the Company will also be submitting certain other financing, regulatory and executive compensation matters to shareholders for approval. An information circular (the “Information Circular”) detailing the matters submitted to the shareholders for approval at the AGM is available on SEDAR at http://www.sedar.com.

SmartLynx Offering

On November 27, 2018, the Company entered into a subscription agreement with SmartLynx Airlines SIA (“SmartLynx”) pursuant to which SmartLynx would purchase 22,727,272 subscription receipts at a price of $0.33 per Subscription Receipt, for aggregate gross proceeds of $7.5 million. On December 27, 2018, the Company announced that it had closed the SmartLynx Private Placement and that the $7.5 million subscription funds, together with any interest earned thereon, are held in escrow pending satisfaction or waiver of the escrow release conditions.

A control position will potentially result from the conversion of the subscription receipts acquired by SmartLynx. As a result, and as required by the policies of the TSXV, shareholders will be asked at the AGM to approve, by way of ordinary resolution, the creation of a control position resulting from the subscription for 22,727,272 subscription receipts by SmartLynx. For further information regarding the SmartLynx Offering please refer to the Company’s press release dated November 27, 2018December 27, 2018, and April 30, 2019, and the Information Circular.

Article and By-Law Amendments

On November 3, 2016, the Honourable Marc Garneau, Minister of Transport, granted the Company an unprecedented exemption from the 25 per cent foreign voting interest limit in the Canada Transportation Act (“CTA”) and be permitted the Company and its subsidiaries to have up to an aggregate of 49 per cent foreign voting interests. Subsequent to granting the exemption order, on June 27, 2018, Minister Garneau announced that, following the Royal Assent of the Transportation Modernization Act, new rules for airline ownership have officially come into force (the “CTA Amendments”). These changes increased foreign voting interest limits from 25 per cent to 49 per cent of voting interests for all Canadian air carriers. A single international investor (individually or in affiliation) cannot hold more than 25 per cent of the voting interests of a Canadian air carrier, and no combination of international air carriers can own more than 25 per cent of a Canadian carrier (individually or in affiliation).

As the CTA Amendments are now in force, the Board determined that it was appropriate to address the changes to the new limitations on voting control by non-Canadians under the CTA Amendments by effecting amendments to the Articles and By-Law No. 1 of the Company. The amendments to the Articles and By-Law No. 1 will require Shareholder approval, which the Company intends to obtain at the AGM. For further information please refer to the Information Circular.

Additional Information

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

Jetlines Announces Operational Agreements with MedAire and Kenyon

Provided by Canada Jetlines Ltd./Globe Newswire

VANCOUVER, British Columbia, June 04, 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 MedAire, the aviation subsidiary of International SOS, a global leader in medical and security risk services.

MedAire has more than 30 years’ experience as a leading travel safety provider in the aviation industry and works with more than 150 airlines worldwide, providing in-flight medical advice; crew support services; onboard medical kits; and training programs.

Jetlines will work with MedAire to ensure the safety of passengers and crew is always the number one priority. This includes providing health assessments prior to departure as well as immediate, 24/7 access to emergency-trained doctors and specialists in the event of a mid-air medical emergency.

The Company is also pleased to partner with Kenyon International Emergency Services. Kenyon provides a full suite of guaranteed resources, services and software to meet the demands of any incident. From an international call center service that can be activated within 30 minutes to family assistance services, Kenyon specialists assist with the activation and communication needs surrounding any incident or accident. Kenyon works with over 600 businesses and governments worldwide, 440 of which are in aviation, and has deployed over 325 activations.

Jetlines CEO, Javier Suarez commented, “At Jetlines, we weave safety and wellness in to all we do. We are building excellent infrastructure, policies, and processes to ensure we mitigate risks and are ready to deliver safe, reliable service to our future passengers, pilots, and cabin crew members. We intend to not only meet, but to exceed the regulatory and safety requirements of Transport Canada in an effort to receive our Air Operator Certificate.”

Jetlines Announces Successful Website Integration and Development in Preparation for Ticket Sales

Provided by Canada Jetlines Ltd/Globe Newswire

VANCOUVER, British Columbia, May 22, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that the Company has successfully completed the integration of several systems necessary in order to start selling tickets and other ancillary purchases through the Jetlines website. The new website is expected to launch in Q3 2019, in time for Jetlines’ targeted commercial launch this December.

As part of Jetlines’ strategy to deliver a strong digital customer experience, and to drive the majority of ticket sales directly through the Jetlines’ website, the Company has successfully integrated several commercial systems in preparation for launch. This includes design and development of the core website together with the booking engine, payment processing systems, revenue management systems, and other ancillary services such as car rentals and hotel bookings.

Jetlines has successfully carried out the design, development, and integration of the new Jetlines website with the reservation system platform, Radixx (see news release dated September 18, 2018), as the booking engine for ticket sales. Through Radixx and its subsidiaries, Jetlines has developed a progressive and secure web application to deliver a website that is fast, user-friendly, and seamlessly integrated with the various tools and functionalities that will be available to Jetlines’ future customers.

In addition to the website build, Jetlines has completed necessary work with partner, Elavon (see news release dated February 26, 2019), to successfully and securely receive payments in both Canadian and US dollars and to connect with Adyen, Jetlines payment service provider of choice selected to accept e-commerce, mobile, and point-of-sale payments on the Jetlines website.

Jetlines has also completed the integration of the airRM systems (see news release dated January 15, 2019), Jetlines’ revenue management program selected to optimize ticket inventories.

Jetlines has successfully carried out the implementation of the hotel booking site connector through the Jetlines website. In addition, the Company is finalizing the car rental white label service integration.

CEO Javier Suarez commented, “While we have been working on building the foundation for our new website for several months, connecting it with our various preferred partners is what turns the website into an e-commerce platform capable of generating our forecasted revenue while delivering a unique and positive customer experience for our future guests. Our user-friendly design and clean sheet build for a website will help us maintain low payment processing costs – a savings that will soon help us achieve the goal of becoming the lowest fare airline in Canada. On top of that, we believe it will deliver an exceptional and memorable experience.”

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

Jetlines Announces a Definitive Lease Agreement with SmartLynx for Two Airbus A320 Aircraft in Line for December Launch

Provided by Canada Jetlines Ltd/Globe Newswire

VANCOUVER, British Columbia, May 16, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that it has entered into definitive lease agreement with its partner, SmartLynx Airlines SIA, for two Airbus A320 that will be available for delivery in Q4 2019 in line with the expected commencement of Jetlines’ operations. Jetlines has set a launch of commercial service targeted for December 17, 2019 using Vancouver (YVR) as Jetlines’ home airport.

Jetlines’ operations department intends to conduct a familiarization inspection of the aircraft in the next few months to ensure the aircraft are in compliance with the Transport Canada A320 Type Certificate, and identify any additional equipment required.

The aircraft are scheduled to be delivered by November 5, 2019 and as part of the AOC (Air Operator Certificate) process, they will be inspected by Transport Canada prior to launching operations.

CEO, Javier Suarez commented, “I am thrilled with the favourable lease rates offered by our partner Smartlynx. I’m also very pleased to share that the aircraft will be delivered in flight-ready condition with no reconfiguration needed; keeping our turnaround time and costs down. The aircraft will be Jetlines branded with the previously defined ultra-low cost 180 seats with an all economy configuration. We are working hard to have these two aircraft flying right before the busy holiday season in December 2019.”

Executive Chairman, Mark Morabito commented, “I want to again express my appreciation to our partners at SmartLynx for working with Jetlines to conclude these definitive lease agreements on favorable terms. Jetlines continues to work on concluding the final component of its financing plan so that it can begin airline operations in time for the holiday season.”

The two Airbus A320’s have virtually identical conformity in design, features, and equipment, allowing Jetlines to expedite the necessary training and maintenance processes. The two aircraft will be configured with 180 ultra-light ACRO seats, helping the airline save fuel while increasing its payload.

Jetlines Announces Definitive Subscription Agreement for Financing with Korean Special Purpose Fund

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.

Jetlines Announces that SmartLynx has Agreed to Release Funds on Ticket Sales

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.”