Global Crossing Airlines Group has closed its previously announced private placement of $6 million in non-convertible debentures. The lead investor in the Offering was Alterna Capital Partners, through an affiliate of Alterna Core Capital Assets Fund II, L.P. Alterna is a real asset investor with a specific focus on transportation assets. The investment represents Alterna’s commitment to support GlobalX with its growth strategy and is made in conjunction with various leasing partnerships. Alterna was founded in 2007 and currently manages over US$600 million across two private equity funds, one credit fund and co-investments.
The securities sold in the Offering consisted of non-convertible debentures (each, a “Debenture”) and one warrant (each, a “Warrant”) for every US$1.24 of principal of the Debentures for gross proceeds of US$6,000,000. A total of 4,838,707 Warrants were issued. Each Warrant is exercisable into one share of common stock (each, a “Warrant Share”) at an exercise price of US$1.24 per Warrant Share, with an exercise period of 24 months from the date of closing.
The net proceeds will be used to secure three additional A320s for charter operations to be delivered by the second quarter of 2022. Funds will also be used for deposits for the first four A321F aircraft for cargo operations by Q4 2022.