FLYHT Announces Closing of $5 Million Unsecured Debenture Arrangement

Rhea-AI Summary

FLYHT Aerospace Solutions (TSXV:FLY, OTCQX:FLYLF) announced the closing of a $5 million unsecured debenture with Pinnacle Island II LP, an unrelated third-party lender. The debenture has a three-year term with an annual interest of 12%, paid quarterly. The proceeds are subject to a 5% discount, benefiting the lender.

Additionally, FLYHT has issued 2,000,000 common share purchase warrants to the lender, each warrant exercisable at $0.4839 for three years. Paradigm Capital Inc. served as the financial advisor for this transaction, receiving a 4% cash commission on the principal amount.

Positive

• FLYHT secured $5 million in funding through an unsecured debenture.
• The debenture has a term of three years, providing extended financial stability.
• FLYHT issued 2,000,000 warrants, potentially increasing future equity capital.
• Paradigm Capital Inc. involvement indicates strong financial advisory support.

Negative

• The debenture carries a high annual interest rate of 12%, increasing financial burden.
• Proceeds are discounted by 5%, reducing the net funding received by FLYHT.
• Issuing 2,000,000 warrants could lead to future share dilution.
• FLYHT paid a 4% cash commission to Paradigm Capital Inc., increasing transaction costs.

CALGARY, AB / ACCESSWIRE / June 10, 2024 / FLYHT Aerospace Solutions Ltd. (TSXV:FLY)(OTCQX:FLYLF) (the "Company" or "FLYHT") is pleased to announce that the Company has closed its previously announced unsecured debenture in the principal amount of $5,000,000 (the "Debenture") with Pinnacle Island II LP (the "Lender"), an unrelated third-party lender (see press release dated May 29, 2024).

The Debenture carries a term of three years, with annual interest of 12% payable on a quarterly basis. Proceeds are discounted by 5% (with such discount fee for the benefit of the Lender). As additional consideration for the loan, the Company has issued to the Lender 2,000,000 common share purchase warrants (the "Warrants"), with each Warrant exercisable for a period of three (3) years into one common share with an exercise price equal to $0.4839.

Paradigm Capital Inc. acted as a financial advisor to FLYHT on this transaction and was paid a cash commission equal to 4% of the Debenture principal amount.

About FLYHT Aerospace Solutions Ltd.
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT's hardware products can also be interfaced with FLYHT's proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.

Contact Information:

FLYHT Aerospace Solutions Ltd.	FNK IR LLC
Alana Forbes	Matt Chesler, CFA
Chief Financial Officer	Investor Relations
403.291.7437	646.809.2183
investors@flyht.com	mchesler@flyht.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: FLYHT Aerospace Solutions Ltd.

View the original press release on accesswire.com

FAQ

What did FLYHT Aerospace Solutions announce on June 10, 2024?

FLYHT announced the closing of a $5 million unsecured debenture arrangement with Pinnacle Island II LP.

What is the term and interest rate of FLYHT's new debenture?

The debenture has a term of three years with an annual interest rate of 12%, payable quarterly.

What discount applies to the proceeds of FLYHT's debenture?

The proceeds are discounted by 5%, benefitting the lender.

How many warrants did FLYHT issue to the lender?

FLYHT issued 2,000,000 common share purchase warrants to the lender.

What is the exercise price and period for the warrants issued by FLYHT?

Each warrant is exercisable at $0.4839 for a period of three years.

Who acted as a financial advisor for FLYHT's debenture transaction?

Paradigm Capital Inc. acted as the financial advisor.

What was the commission paid to Paradigm Capital Inc. for advising FLYHT?

FLYHT paid a 4% cash commission on the principal amount of the debenture.