Jet Metal Corp. (TSX VENTURE: JET) is pleased to announce that further to its press release of January 31, 2017, it has completed a public offering pursuant to which it has sold an aggregate of 22,778,700 subscription receipts at a price of $0.30 per Subscription Receipt for gross proceeds of $6,833,610. As previously announced, Mackie Research Capital Corporation, together with Haywood Securities Inc., PI Financial Corp. and Echelon Wealth Partners Inc.acted as agents in respect of the Offering. With the closing of the Offering, all material conditions to the business combination of Canada Jetlines Ltd. and Jet Metal have been satisfied. Jet Metal and Jetlines intend to close the Transaction on or around February 28, 2017.
Subscription Receipt Offering
Each Subscription Receipt will entitle the holder thereof to receive, without payment of additional consideration or further action on the part of the holder, one unit of the Company, upon receipt by the escrow agent, prior to the date that is 180 days from the closing of the Offering of a release notice from the Company and Jetlines, and acknowledged by the Lead Agent on behalf of the Agents, confirming that: (a) all of the conditions precedent to the closing of the Transaction have been satisfied or waived to the satisfaction of the Company and Jetlines, (b) except as consented to in writing by the Lead Agent on behalf of the Agents, no material provision of the amalgamation agreement dated April 12, 2016 between the Company and Jetlines has been amended by the parties thereto, and (c) neither the Company nor Jetlines is in material breach or default of the Agency Agreement.
The net proceeds of the Offering will be used to further the business objectives of Jetlines in launching an ultra-low cost airline carrier in Canada, including advancing the licensing process, augmenting the leadership team with operations and commercial personnel, branding and marketing activities, as well as advance internet, digital media and IT systems initiatives.
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