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Global Crossing Airlines (TSXV:JET) signs cooperation agreement with Estelar Airlines
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  • Global Crossing Airlines (JET) gives details on the spin-out of Canada Jetlines
  • GlobalX shareholders to receive one share of Canada Jetlines for every two shares of GlobalX
  • On the closing of the transaction, Jetlines and GlobalX will be operated as separate companies
  • Completion of the transaction would not affect in any way the current shareholdings of shareholders in Global Crossing Airlines
  • Global Crossing Airlines Group Inc. (JET) is down 14.14 per cent and is trading at C$1.70 at 11:58 am ET

Global Crossing Airlines Group Inc. (JET) and Jetlines have entered into an arrangement agreement.

This agreement is pursuant to how the ownership interest of Jetlines will be distributed to the shareholders of GlobalX.

Each shareholder of GlobalX, as of the record date for the transaction, will receive one share of Jetlines for every two shares of GlobalX held on the Record Date.

After distribution GlobalX will retain 25 per cent of Jetlines shares, with 75 per cent held by GlobalX shareholders as of the Record Date.

On the closing of the transaction, Jetlines and GlobalX will be operated as separate companies with separate management teams and Boards of Directors.

Each shareholder of GlobalX as of the Record Date will receive one share of Jetlines for every two shares of GlobalX held on the Record Date.

Jetlines intends to operate as a Canadian charter airline once applicable regulatory approvals are in place and the transaction is essential to achieve compliance with foreign ownership and control restrictions applicable to Canadian airlines.

Any such listing will be subject to Jetlines fulfilling all of the requirements of the applicable stock exchange.

The record date has not yet been determined but will be announced in a future press release.

GlobalX expects that the record date, and closing of the transaction, will occur prior to the end of Q2, 2021.

The Jetlines shares will be subject to resale restrictions with 50 per cent of the Jetlines shares being subject to escrow at the time of completion of the spin-out and released in twelve months.

GlobalX is a US 121 domestic flag and the supplemental airline now in FAA certification using the Airbus A320 family aircraft.

Global Crossing Airlines Group Inc. (JET) is down 14.14 per cent and is trading at C$1.70 at 11:58 am ET.

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