EKB’s Business Law team, led by Fraser Hartley and Riley Lalonde, and assisted by Larissa Dziubenko and Jake Schroeder, successfully acted for SmartLynx Airlines SIA in its $7.5 million private placement investment in Canada Jetlines Ltd.
With its investment, SmartLynx acquired subscription receipts that convert to shares and warrants of Canada Jetlines when certain conditions are met. With the closing of the initial $7.5 million investment, SmartLynx also received the option to acquire an additional $7.5 million in shares of Canada Jetlines.
In connection with its investment, SmartLynx also entered into agreements to provide ACMI (Aircraft-Crew-Maintenance-Insurance) and consulting services to Canada Jetlines.
SmartLynx Airlines SIA was founded in 1992 as a private airline. Today, it is the leading Airbus A320 ACMI provider in the EU. In 2019, SmartLynx’s fleet will consist of 20 aircraft, flying routes in Europe and Asia.
Canada Jetlines Ltd. (TSX-V: JET) is aiming to become Canada’s first true Ultra-Low-Cost Carrier (ULCC) airline, with plans to operate flights across Canada and provide non-stop service from Canada to the United States, Mexico, and the Caribbean.