Loan agreement finalized for Canada Jetlines and Roosheila Group Inc.
LONDON – Canada Jetlines Operations, a brand new Canadian leisure airline, announced that it has entered into a $1,000,000 cargo loan agreement with Rooshelia Group Inc.
The lender is a holding company for travel industry veteran Reg Christian.
The current loan has an interest rate of 7% per annum and a maturity date of 2 years from the date of agreement, with principal and interest amounts payable in equal monthly installments for the period 2 years old.
Rooshelia Group will receive 25,000 ordinary shares on the day that is one year from the date of the agreement and an additional 25,000 ordinary shares on the date that is years from the date of the agreement.
The lender will also be able to obtain a right of appointment to the board of directors for terms, conditions and loans.
The airline plans to use the total proceeds from the charge for day-to-day general operations, running and capital of the business.
This includes the closing of the transaction and is currently subject to conditional closing review, including approval of receipt of Neo Exchange inc.
The lender is closely associated with Reg Christian, a director of the company, and the lender’s participation in the loan is considered a related party transaction.
The transaction within the meaning of the Multilateral Instrument 61-101 Protection of holders of minority securities in special transactions (“MI 61-101”).
About Canada Jetlines
Canada Jetlines is a new, all-Canadian airline, focused on flying vacationers to sunny destinations in the United States, the Caribbean and Mexico.
These destinations are particularly popular with Canadians who want to escape the extreme Canadian cold. Popular destinations for Canadians are Florida, Cuba, Bahamas, Dominican Republic, St. Maarten and Bermuda.
In Mexico, places like Tijuana and Cancun are just as popular.
The creation of this airline disrupts the status quo, which is generally dominated by Air Canada, WestJet, Transat and Sunwing. Canada Jetline plans to operate the ultra-efficient Airbus A320 to fly these lucrative routes.
The airline is based in Toronto, the country’s largest city. The airline’s mission is to make air travel affordable and accessible and to allow Canadians to fly at the best possible price.
The Canada Jetlines team is equipped with the most experienced team, with decades of experience in aviation, as well as an efficient aircraft design that allows airfares to be the cheapest possible.
It will also stimulate and disrupt the Canadian travel market after decades of being crowned by traditional airlines.
The airline aims to take off this year, Jetlines will use the modern online booking platform and provide a turnkey solution available to travel agents, tour operators and consumers, with the ability to generate revenue on bookings and ancillary sales.