Jet.AI Expands Opportunities with Warrant Amendments
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Jet.AI Announces Warrant Amendments to Enhance Capital Structure
Jet.AI Inc. (“Jet.AI” or the “Company”) (NASDAQ: JTAI), a leading entity in the private aviation and artificial intelligence sector, has made strides in its operations with the announcement of its recent collaboration with Continental Stock Transfer & Trust Company. This collaboration outlines two key amendments: the 2021 Warrant Agreement Amendment and the 2023 Warrant Agreement Amendment. These amendments are focused on the management of the Company’s redeemable warrants and private placement warrants aimed at enhancing shareholder value.
Details of the Warrant Amending Agreement
The 2021 Warrant Agreement Amendment will oversee the management of redeemable warrants that are designed to allow the purchase of shares of Jet.AI’s common stock, trading on The Nasdaq Capital Market under the symbol “JTAIW”. Meanwhile, the 2023 Warrant Agreement Amendment pertains to the merger consideration warrants, trading under the symbol “JTAIZ”. These actions come in the wake of a previously announced exchange offer and consent solicitation.
Successful Completion of Exchange Offer
Following the expiration of the exchange offer initiated on June 27, 2024, Jet.AI has reported noteworthy participation. Approximately 90.6% of outstanding redeemable warrants and all of the private placement warrants, along with 67.7% of merger consideration warrants, were successfully tendered prior to the offer's closing. The completion of this transaction not only reflects confidence among investors but also signifies the Company’s strategic growth initiatives.
Post-Offer Exchange and Expected Outcomes
In light of the agreement amendments, Jet.AI has elected to execute a Post-Offer Exchange. This will allow each warrant to be exchanged for 10% fewer shares than originally stipulated. As a result, holders of redeemable warrants will now receive 0.24741 shares of common stock, while holders of merger consideration warrants will receive 0.9120 shares per outstanding warrant.
Projected Increase in Outstanding Shares
Jet.AI anticipates the execution of the Post-Offer Exchange to finalize on September 9, 2024, potentially increasing the total outstanding shares significantly. With an expected issuance of around 2.4 million shares of common stock, the total shares outstanding could rise to approximately 27,054,217. This is a remarkable increase of 93.2% compared to the pre-offer figures, emphasizing the Company's expanding equity base.
Impact on Warrant Trading
Upon the completion of the Post-Offer Exchange, all associated warrants will cease to be outstanding. Accordingly, the redeemable and merger consideration warrants will be suspended from trading on The Nasdaq Capital Market, with plans for de-listing thereafter. The common stock of Jet.AI will retain its listing under the symbol “JTAI”, maintaining its strong market position.
About Jet.AI and Its Innovations
Founded in 2018, Jet.AI operates primarily in two segments: Software and Aviation. The innovative software segment is notable for its CharterGPT app, which leverages natural language processing and machine learning to enhance the private jet booking process. Additionally, the Jet.AI Operator platform provides crucial software tools that assist FAA Part 135 charter providers in increasing revenue, efficiency, and minimizing their environmental footprint.
Partnerships and Market Position
Jet.AI has established a notable alliance with the Las Vegas Golden Knights, 2023 NHL Stanley Cup champions, further solidifying its presence in the market. This partnership exemplifies the brand's commitment to engaging with high-profile entities, reinforcing its innovative image, and expanding its customer base.
Frequently Asked Questions
What is the purpose of the warrant amendments announced by Jet.AI?
The amendments aim to enhance the capital structure of Jet.AI, allowing for a more efficient exchange of warrants for shares, thereby benefiting shareholders.
When is the expected date for the Post-Offer Exchange to finalize?
The Post-Offer Exchange is expected to be finalized on September 9, 2024.
How many outstanding shares will Jet.AI have post-exchange?
Jet.AI expects to have approximately 27,054,217 shares of common stock outstanding after the completion of the Post-Offer Exchange.
What are the trading symbols for Jet.AI warrants?
The redeemable warrants trade under the symbol “JTAIW” and the merger consideration warrants under “JTAIZ”.
Who can be contacted for more information regarding Jet.AI?
For further information, individuals can reach out to Gateway Group, Inc. at 949-574-3860 or via email at Jet.AI@gateway-grp.com.
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