Global Crossing Airlines Group has announced that it will benefit from a USD10 million financing in the form of an equity offering to be purchased in whole by Ascent Global Logistics, a supply-chain solutions provider in the United States air charter space.

Ascent will acquire two million units in the company, each unit consisting of one share of common stock and one warrant, at a price of USD1.29 each for proceeds of USD2.58 million, the GLOBALX (GXA, Miami Int'l) parent outlined in a statement on April 21. Each warrant entitles the holder to buy an additional share for USD1.50 for a period of 60 months after closing.

Ascent will also subscribe for and purchase 5,537,313 units at a price of USD1.34 per unit, for gross proceeds of USD7.42 million. Units in this round will contain one non-voting Class A common share and one warrant with the same terms as above.

Proceeds from the offering will be used, in the words of Ed Wegel, GlobalX’s chairman and chief executive, “to accelerate our growth with additional A320s added to our fleet in 2021 and to prepare for A321 freighter aircraft later this year.” He added that the Miami-headquartered charter and cargo start-up also sees “strong synergies with Ascent’s logistics capabilities and robust freight network.”

Under the investment agreement, which is non-brokered and is subject to the approval of Toronto’s TSX Venture Exchange, Ascent Global Logistics will also have the right to appoint two directors to the board of Global Crossing.

Michigan-based Ascent Global Logistics has operated USA Jet Airlines (UJ, Detroit Willow Run) for several decades, and in late November 2020 it also acquired defunct Alaskan regional specialist Hageland Aviation Services (H6, Saint Mary's), subsequently plotting to restart it on May 1 under the new brand Rambler Air (H6, Anchorage Lake Hood SPB). Ascent’s executive chairman, Chris Jamroz, said in the statement that his company had “evaluated entering the charter air market on our own, and realised we were much better off partnering with GlobalX instead.”

Global Crossing Airlines, which continues its journey towards US Federal Aviation Administration certification using A320 Family aircraft, opened trading on the TSX Venture on April 22 at CAD2.09 Canadian dollars (USD1.67) per share.