Global Crossing Airlines has announced details of its intention to spin-out Canada Jetlines to its shareholders. If you are a GlobalX shareholder on the record date of June 24th this year, you will receive one share in Canada Jetlines for every two shares you own in GlobalX. This is a rare opportunity to have stock in two separate airlines by owning GlobalX before the record date.
Investors may remember that the past version of Canada Jetlines was looking to raise more than $50 million to become Canada’s first scheduled ULCC (Ultra-Low Cost Carrier) but after exhaustive efforts it was never able to get off the ground.
Fast forward to today, Canada Jetlines as a charter airline is looking to capitalize on the opportunity to get aircraft at a significant discount due to the COVID pandemic. Jetlines is poised to become a sun destination airline for Canadians to take advantage of with an expected travel surge when restrictions are finally lifted.
Serial Canadian entrepreneur Ravinder Minhas recently joined the Canada Jetlines board of directors and was interviewed by CBC stating “People go, “Whoa. What are you doing? Are you nuts?” Yet Mr. Minhas believes that there has never been a better time to launch an airline in Canada. “We’re able to get airplanes at one heck of a price. Where it looks like things are down, that’s the best time to get in.”
In June 2020, GlobalX airlines took over the shell of the past Canada Jetlines (TSX-V: JET) and started trading on the TSX-V after closing a $1.5 million $0.25 USD unit financing. Shares briefly ran to $3.30 and as of this writing now sit at just over $2.00 as the airline finishes its FAA certification. GlobalX is a US based airline that will operate charter and cargo flights and will operate independent of Canada Jetlines which will be looking to finance its start-up likely commencing in June.
The CBC video can be viewed by clicking here.
The CBC News article can be read here.
A reminder that management will be hosting a corporate update webinar tomorrow, (May 27th) discussing the Canada Jetlines spin-out as well as GlobalX and where it stands with certification.
Register in advance for this webinar:
When: May 27, 2021 02:00 PM Eastern Time / 11:00 AM Pacific Time (US and Canada)
After registering, you will receive a confirmation email containing information about joining the webinar.
Please click the link below to join the webinar:
Or One tap mobile :
Canada: +14388097799,,82953168065# or +15873281099,,82953168065#
Dial (for higher quality, dial a number based on your current location):
Canada: +1 438 809 7799 or +1587 328 1099 or +1 647 374 4685 or +1 647 558 0588 or +1 778 907 2071 or +1 204 272 7920
Webinar ID: 829 5316 8065
International numbers available: https://us02web.zoom.us/u/kuvqo81lD