flyExclusive Announces $25 Million Equity Investment
05 Marzo 2024 - 3:15PM
Business Wire
Capital to fund flyExclusive’s working capital,
including aircraft acquisition plans
flyExclusive, Inc. (NYSEAMERICAN: FLYX) (“flyExclusive” or the
“Company”) a provider of premium private jet charter experiences,
today announced that it has entered into a securities purchase
agreement with an investment vehicle managed by EnTrust Global
(“the Investor”) pursuant to which the Investor purchased 25,000
shares of Series A Non-Convertible Redeemable Preferred Stock, par
value of $0.0001 per share (the “Series A Preferred Stock”), at a
purchase price of $1,000 per share. The Company received
approximately $25 million in cash proceeds in connection with the
transaction, which closed on March 4, 2024 (the “Issue Date” or
“Effective Date”).
“We’re thrilled to expand our relationship with EnTrust Global,
a partner that recognizes the significant opportunity flyExclusive
has to become the nation’s first vertically integrated private
aviation company,” said Jim Segrave, Founder and CEO of
flyExclusive. “Expanding our fleet will allow us to further build
out our fractional program and bring greater reliability and
convenience to our customers.”
The Series A Preferred Stock accrues dividends beginning on the
Issue Date and ending on the first-year anniversary of the Issue
Date at 10.00% per annum, at 12.00% per annum for the second year,
at 14.00% per annum for the third year and at 16.00% per annum for
the fourth year and thereafter. The dividends will compound
annually for the first two years. On the third annual dividend
payment date, the Company must pay at least 43% of the dividends in
cash, and on each subsequent annual dividend payment date the
Company must pay 100% of the dividends in cash. After the
first-year anniversary of the Issue Date, flyExclusive may elect to
redeem all or a portion of the outstanding shares of Series A
Preferred Stock, or any portion thereof, for cash at a redemption
price per share as detailed in the Series A Certificate of
Designation. After the fifth-year anniversary of the Issue Date,
each holder of the Series A Preferred Stock may elect to require
the Company to redeem all or a portion of its outstanding shares of
Series A Preferred Stock for cash at a redemption price per share
as detailed in the Series A Certificate of Designation. The Series
A Preferred Stock is generally not entitled to any vote but holds
certain consent rights as described in the Series A Certificate of
Designation. If voting is required by applicable law or otherwise,
each holder of Series A Preferred Stock will be entitled to one
vote per share.
On the Effective Date, flyExclusive also issued the Investor a
warrant, granting the Investor the right to purchase shares of the
Company’s Class A common stock (“Common Stock”) in an aggregate
amount equal to 1.5% of the Company’s outstanding Common Stock on a
fully diluted basis (the “Share Count Cap”), calculated in
accordance with the terms of the Warrant, at an exercise price of
$0.01 per share (the “Warrant”). The Warrant is not exercisable
until the second anniversary of its issuance, at which time only
one half of the Share Count Cap may be purchased. Beginning on the
third anniversary of the issuance, 100% of the Share Count Cap may
be purchased. The Warrant expires on the fifth anniversary of the
Effective Date and may not be exercised for a number of shares of
Common Stock having an aggregate value in excess of $11,250,000,
calculated in accordance with the terms of the Warrant.
About flyExclusive
flyExclusive is a vertically integrated, FAA-regulated operator
of private jet experiences offering customers on-demand charter,
Jet Club, and fractional ownership services to destinations across
the globe. flyExclusive has one of the world’s largest fleets of
Cessna Citation aircraft, and it operates a combined total of
approximately 100 jets, ranging from light to large cabin sizes.
The company manages all aspects of the customer experience,
ensuring that every flight is on a modern, comfortable, and safe
aircraft. flyExclusive’s in-house repair station, including paint,
interiors, and avionics capabilities, are provided from its campus
headquarters in Kinston, North Carolina. To learn more, visit
www.flyexclusive.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections, and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this document, including but not
limited to: the potential dilution of stock ownership by our
capital raising efforts; the ability of the Company to repay its
debt; management of growth; the outcome of any legal proceedings;
the ability to maintain the listing of the Company’s securities on
a national securities exchange; volatility of the price of the
Company’s securities due to a variety of factors, including changes
in the competitive and highly regulated industries in which
flyExclusive operates, variations in operating performance across
competitors, changes in laws and regulations affecting
flyExclusive’s business; the ability to implement business plans,
forecasts, and other expectations, and identify and realize
additional opportunities; and the risk of downturns and a changing
regulatory landscape in the highly competitive aviation industry.
The foregoing list of factors is not exhaustive. You should
carefully consider the foregoing factors and the other risks and
uncertainties described in the “Risk Factors” section of
flyExclusive’s registration statement on Form S-1 and other
documents filed by the Company from time to time with the SEC.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and the Company assumes no obligation and does not
intend to update or revise these forward-looking statements,
whether as a result of new information, future events, or
otherwise. The Company does not give any assurance that it will
achieve its expectations.
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version on businesswire.com: https://www.businesswire.com/news/home/20240305412054/en/
Media: Jillian Wilson, Marketing Specialist
media@flyexclusive.com
Investor Relations: Sloan Bohlen, Solebury Strategic
Communications investors@flyexclusive.com
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