Canada Jetlines has closed a previously-announced $1.5 million loan deal and said it "intends to undertake a non-brokered private placement with a single arm’s length investor to raise from $1,000,020".
The offering of just over $1 million "consists of 4,762,000 units issued at $0.21 per unit", the carrier said, with each unit made up of one variable voting share and one half of one warrant.
"Each warrant entitles the holder thereof to purchase an additional share for a period of 24 months after closing at a price of $0.35 per warrant share," Jetlines explained, adding that the money raised from the offering, which is expected to close on or before April 15, would be used for "general corporate and working capital purposes".
The carrier said that the $1.5 million loan it closed was advanced in a single tranche on March 12 and would bear interest at 7.95% per annum, with a maturity date of 60 months from the date of advance.
The carrier had earlier announced details of the loan, which was advanced by Reg Christian, a director of the company and "travel industry veteran".