It is almost time to fly as GlobalX is in the near to final stage of the FAA Certification process as it will be starting proving run flights tomorrow, Tuesday, (June 8th). Utilizing its first Airbus A320, the proving runs are expected to continue for 2-3 weeks subject to FAA oversight.
In a recent management webinar update, it was stated that subject to securing Certification, the company is hoping to begin flying as of July. GlobalX has contracts in place that “go live” with Certification.
Staying with that theme and subsequent to the management update, there were a series of new charter contracts brought to light that are slated to kick-in as of this December. These “sun” contracts are based on the 3rd and 4th A320’s, with expected deliveries in September and October.
- Starting Dec 15th- 3 flights per week Toronto-Miami
- Starting December 18th- 2 flight per week Miami-Tobago
- Miami-Punta Cana, Miami-Cancun, Miami-Nassau all contracted with tour operators
Now, to switch to the subject of the spin-out of Canada Jetlines to GlobalX shareholders, management wants to ensure that shareholders completely understand the opportunity:
I currently hold shares in GlobalX (TSX-V: JET / OTCQB JETMF) and was told that I will be getting shares in Canada Jetlines shares for free, is this true?
Yes, you will receive one share in Canada Jetlines for every two shares that you own in GlobalX. The shares that you receive in Canada Jetlines will be considered a dividend from GlobalX and although there is no cost for these shares, this is a taxable dividend for Canadian shareholders. GlobalX will be issuing a tax form to each Canadian shareholder with the relevant details.
Will I keep all of my GlobalX shares after the spin-out of Canada Jetlines?
Yes, the Canada Jetlines shares are in addition to your GlobalX shares.
There is a date of June 24th/2021 as the date of record to receive my shares in Canada Jetlines, what does this mean?
You must have your GlobalX shares held in brokerage accounts on the date of June 24th in order to receive your Canada Jetlines shares.
I want to buy stock on June 24th in order to receive shares in Jetlines, can I do this?
No, when you purchase stock in any company it can take up to three days to close on the sale, we would recommend that the stock in GlobalX is purchased more than three days in advance of June 24th if you are looking to receive spin-out shares.
Can I sell my GlobalX shares on June 25th or later and still get my Jetlines shares?
I have read that if I’m Canadian and own GlobalX shares that I will not have voting rights with my common shares, is this true?
Yes, because GlobalX is now a company registered in the United States, DOT needs to ensure that the majority of its shareholders are U.S. citizens (75%) and the most effective way to meet DOT approval requirements is to create two classes of common shares. These are common shares that are U.S. owned with voting rights and common shares that are not U.S. owned with non-voting rights.
Will the two common shares trade at the same price?
It is expected that the shares will trade at the same price based on the convertibility; however, GlobalX can’t provide any assurances related to future trading in the Company’s shares.
When will Canada Jetlines start trading?
Management will be looking to raise funds for working capital and to meet Canadian regulatory operating requirements. It is anticipated the financing will begin in July. Once the financing is completed, the company will apply for a TSX-V listing.