Canada Jetlines (AU, Toronto Pearson) has revived plans to list on the TSX Venture Exchange after it announced a reverse takeover of already-listed firm Jet Metal Corp., a junior uranium explorer which owns mineral claims in Newfoundland and Wyoming.
Announcing the signing of a Letter of Intent (LOI) between the two companies, Jetlines said it expected to hold an IPO sometime in May.
According to terms of the arrangement, each 1.5 share of Jet Metal will convert to one share of the new company, which will list under Jet Metal's existing market ticker symbol, JET. Each Jetlines share will be treated as equal to 1.5 shares of the new entity. The transaction is subject to TSX approval.
“With this transaction Jetlines will have the working capital to move forward in earnest and we expect to be announcing a number of major developments in a timely manner,” Jim Scott, President and CEO of Canada Jetlines, said.
The ULCC start-up had previously pursued a similar plan albeit with Inovent Capital Inc. However, the marriage turned sour with the Vancouver-based capital-pool company accusing Jetlines of breach of contract. The two eventually reached a settlement in September last year.
