This afternoon, FLYHT announced that it would be boosting its balance sheet by raising $5.1 million (USD) to fund sales and marketing and importantly, “acquisition related expenses”. In addition to funding future business initiatives, the brokered private placement is aimed at significantly increasing FLYHT’s exposure in the U.S. capital markets, which have been a strong performer versus the Canadian experience.
The financing will be led by Minneapolis based Dougherty & Company and will be focused on institutional investors. Up to 30 million units at a price of USD $0.17 (CDN$0.22) will be issued comprised of one common share and a three-year half warrant exercisable at USD $0.25 (CDN$0.32).
For more information about Dougherty & Company, please click here.
CEO Bill Tempany will be on the road beginning this Friday with his first planned stop in Minneapolis with subsequent stops likely to be in Chicago, Milwaukee, Boston and San Francisco over the next two weeks.
FLYHT began trading on the OTCQX under the symbol FLYLF in June of last year.
We spoke with management and the following key points were highlighted:
- There is an air of confidence around raising funds to support upcoming opportunities.
- Exposure to strong U.S. markets – the private placement will bring more shares of FLY to our friendly neighbours south of the border.
- When negotiating with large international companies, a strong balance sheet is good to have in your corner.
- The prospect of acquisitions is back on the table. According to management there are promising opportunities on the table.
- U.S. coverage – It is not uncommon for an investment bank to initiate coverage in support of or following a financing.
We also posed the question about a possible stock consolidation in context of the potential issuance of the additional shares. Management was clear that there will be no consolidation considered until such time as a “material” event justified it, potentially to pave the way to seek a listing on a senior U.S. Exchange.
To view the news release, please click here.