Canada Jetlines, formerly known as Jetlines (CJL, Vancouver Int'l), intends to undertake a non-brokered private placement to raise up to CAD5 million Canadian dollars (USD3.94 million), it outlined in a statement on July 15. It will use the proceeds “to advance the Canadian airline licencing process and for general corporate and working capital purposes,” it said.

The news comes after GLOBALX (GXA, Miami Int'l) completed on June 28 a spin-out of the shares in Jetlines, its wholly-owned subsidiary, to its shareholders, a move originally announced in September 2020 and elaborated on in April 2021.

The upcoming private placement at the Canadian vacation charter specialist consists of “units” issued at CAD0.40 (USD31.50) per unit, each of which consists of one common share and one half of one warrant. One warrant entitles the holder to buy an additional share for CAD0.70 (USD55.15) for a period of 24 months after closing. The company may pay finder’s fees in connection with certain subscriptions, it added.

The statement described Canada Jetlines as “a Canadian low-cost carrier that intends to begin operations, pending CTA [Canadian Transportation Agency] approval, as a tour operator with flights into popular sun destinations in the USA and Mexico,” adding that it intends to operate a fleet of Airbus A320 aircraft.

Separately, GLOBALX announced in its own disclosures on July 14 and 15 the signings of operating leases for its third and fourth passenger aircraft - an A320-200 from Avolon and an A320-200 from Genesis Aircraft Services, to be delivered in September and October, respectively.

GLOBALX has already taken delivery of one A320 and one A321 as it prepares for revenue operations. Subject to FAA and DOT approvals, it intends to fly as an ACMI and charter airline serving the US, Caribbean, and Latin American markets.

On the occasion of the fourth signing, GLOBALX CEO Ed Wegel commented: “This aircraft will be assigned to our new regional base at Atlantic City, New Jersey, where it will have a full slate of northeast originating charter flights starting soon after delivery.”