Canada Jetlines Working to Become Canada's 1st Ultra Low-Cost Air Carrier
By Esther Tanquintic-Misa | July 3, 2014 12:00 PM EST
Canada could be seeing soon on its many runways its first ultra low-cost air carrier as Canada Jetlines Ltd. announced plans of raising $10-million to enlist on the TSX Venture Exchange.
An airplane of German air carrier Lufthansa lands at the airline's main hub, the Fraport airport in Frankfurt, March 14 2013. REUTERS/Kai Pfaffenbach
Inovent Capital Inc., a capital pool company, said in a statement it has entered into a letter of intent with Canada Jetlines Ltd. where it will help the aspiring company gain access to the stock market.
The brainchild of aviation veterans Jim Scott, David Solloway and Dix Lawson, Canada Jetlines targets to fly to underserved markets in western Canada like Prince George, Kamloops and Regina, by adopting the ultra low-cost carrier model pioneered by companies like Ryanair and Spirit Airlines.
"You build the airline that people want to fly, not necessarily the airline that would be in your dreams," Dave Solloway, Jetlines president, told the National Post.
"The focus is on low airfares," he added, noting that it is 40 per cent much lower than Air Canada and WestJet.
The proposed transaction between Canada Jetlines and Inovent is subject to the following key conditions:
- the parties will execute the Transaction Documents by Aug 29, 2014;
- Jetlines will complete a financing of a minimum of$300,000 and a maximum of $500,000 (the "Bridge Financing") on or before July 18, 2014;
- Inovent will complete a financing of 20,000,000 shares at a price of $0.50per share on a post-Consolidation basis for aggregate proceeds of $10,000,000 (the "Concurrent Financing"). The Concurrent Financing will close immediately prior to or concurrently with the Proposed Transaction. Further details regarding the Concurrent Financing will be announced in a further news release;
- the parties will complete due diligence investigations, each to their own satisfaction, on or before Aug 29, 2014;
- the Proposed Transaction will have received approval of the TSXV and all necessary corporate and shareholder approvals. It is anticipated that the approval of Inovent's shareholders will be required; and
- receipt of a report of a sponsor in respect of the Proposed Transaction or waiver from the sponsorship requirement by the TSXV. Inovent anticipates applying for a waiver of the sponsorship requirement in reliance upon completion of Concurrent Financing.
Jetlines has raised approximately $1-million so far, according to Solloway. But still needs $40 million to launch their product and services.
The company has hired Euro Pacific Canada as its investment banker to help it bridge that gap.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Most Popular Slideshows
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
- Kendall Jenner Could Be Next Victoria's Secret Angel [PHOTOS]
Join the Conversation
- Ebola Update: Death Toll Reaches 2,461; US$1B Is Needed To Fight It, Says UN
- BC Teachers’ Strike Reaches Tentative Deal With Government, Date of Class Resumptions Still Not Sure
- West Africa Ebola Epidemic To Last 12-18 Months More
- Australia To Lose Hundreds Of Billions Worth Of Infrastructure Due To Rising Sea Levels
- Security for Pope Francis' Albania Trip At Status Quo, Won’t Be Reinforced Despite ISIS Threat – Vatican
- iOS 8 Release Date Of Sept 17 Has Arrived: Update Begins At 10AM Pacific Time, Upgrade Your iDevices With iOS 7.1.2 First To Install iOS 8
- Pregnant Kate Middleton May Call Off Malta Trip Due To Sickness: Royal Couple Will Move To Anmer Hall Residence
- Why Samsung Galaxy S5 Is Not The Best Smartphone To Purchase Now? If You Still Want To, Wait For A Month To Get It Cheap
- Apple iPad Air 2, iPad Mini 3 October Release Date Roundup: Freshly Leaked Protective Case Debuts Unique Vent Alongside Camera
- Ukraine Crisis: Poland Denies Supplying Weapons To Kiev
- Google Nexus 8 Release Date Countdown Begins Oct 8: 8 Killer Specs and Features to Expect
- Canadian IS Jihadist Wants to ‘Play Soccer’ with Heads of US Decapitated Soldiers