Jetlines (CJL, Vancouver Int'l) has signed a Letter of Intent with a Korean special purpose fund led and established by InHarv Partners Ltd. for financing of up to CAD14 million dollars (USD10.5 million).

Initially, the fund will inject CAD7 million dollars (USD5.3 million) with an option to double the funding within 30 days. The capital will be injected as a 36-month convertible debenture which the fund will be able to convert into Jetlines shares prior to the maturity date.

"Combined with the SmartLynx Airlines financing completed at the end of 2018 and CAD8.8 million (USD6.6 million) in proceeds received through the exercise of previously issued share purchase warrants, Jetlines has raised a significant portion of the funds that it needs to launch airline operations. We intend to raise the balance of the proceeds through additional debt and equity financings in the near term and negotiations are well advanced in this regard," Executive Chairman Mark Morabito said.

InHarv Partners is a Seoul-based fund founded by Jong Chang, an experienced venture capitalist.

At the end of 2018, Jetlines closed CAD7.5 million dollar (USD5.5 million) in financing from SmartLynx Airlines in a deal that also includes a wet-leasing agreement for eight consecutive winter seasons.

The Canadian ULCC also said that it appointed Jyri Strandman as a Special Operations Advisor, recently the COO of GoAir (G8, Mumbai Int'l). At the same time, the previous COO at Jetlines, Michael Bata, left the company.

The ULCC start-up expects to secure its licence during the first half of 2019.