FLYHT Aerospace Solutions Ltd.
TSX Venture: FLY
Shares Issued: 140,386,166
Fully Diluted: 179,132,626
With a move to ensure FLYHT can bridge the gap to achieving positive cash flow by the end of 2013, the company announced an (up to) $5 million debt financing this morning. A debt structure supports management’s objective to raise money with minimal dilution.
The details of the debt financing, as stated in the news release, are as follows: The Debentures will mature on June 30, 2016 and bear interest at a rate of 12% per annum on the contributed amounts, which shall be accrued and paid annually in arrears commencing December 1, 2013. Purchasers of Debentures will receive a capital discount of 10% on the financing, meaning that for every $1.00 Debenture acquired, the Corporation shall owe, on the maturity date, principal equal to $1.10 to the Debenture holder. Subject to the approval of the TSX Venture Exchange, it is anticipated that purchasers of the Debentures will also be issued one bonus common share of the Corporation for every $1.00 principal amount of Debentures acquired pursuant to the offering. All of the securities issued pursuant to the private placement are subject to a 4-month hold period. The Debentures will not be listed on any stock exchange.
Over the past month, the company has been actively travelling to various cities promoting the company and its opportunity. Cities visited include Toronto, Montreal, Vancouver, New York, Milwaukee and Chicago. In the next few weeks management will be doing a tour on the west coast of the United States.
To view today’s news release, please click here.