Global Crossing Airlines Group (GlobalX) has announced a US$6.0 million offering of non-convertible debentures. The lead investor is Alterna Capital Partners, through an affiliate of Alterna Core Capital Assets Fund II, L.P., with a US$2.5 million commitment. 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 offering will consist of non-convertible debentures and one warrant for every US$1.24 of principal of the debentures for gross proceeds of up to US$6m. Each warrant is exercisable into one share of common stock at an exercise price of US$1.24 per warrant share for a period of 24 months from the date of closing.
The debentures have a 24-month maturity date and bear interest at 15% per annum. The company has the option to prepay the principal amount on 30 business days’ notice.
The net proceeds will be used to further the business objectives of the company and to secure three additional passenger A320 aircraft for charter operations to be delivered by the second quarter of 2022. Funds will also be used to fund deposits for the first four A321F aircraft for cargo operations by Q4 2022.