CALGARY, ALBERTA--(Marketwired - April 18, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
FLYHT Aerospace Solutions Ltd. (the " Corporation ") (TSX VENTURE:FLY) is pleased to announce that it has closed the initial tranche of its previously announced debt offering of non-convertible debentures (" Debentures ") (see press release dated March 18, 2013).
Pursuant to this closing, the Corporation will issue an aggregate $1,855,000 of Debentures. The details of the debt financing 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 premium 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. The 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. A total of 1,855,000 bonus common shares were issued under this tranche. All of the securities issued hereunder are subject to a 4-month hold period. The Debentures will not be listed on any stock exchange and are not convertible into common shares of the Corporation.
The net proceeds of the offering will be used for the completion of key certifications (STC's) of the Corporation's next generation product, the AFIRS™ 228 (Automated Flight Information Reporting System), and for working capital and business development objectives.
It is expected that an additional tranche under this financing will close shortly.
The debentures are secured against all personal property of the Corporation, including the Corporation's intellectual property and are subordinated in right of payment to all existing and future secured bank and/or governmental indebtedness of the Corporation and any existing security already registered against the Corporation's assets.
About FLYHT Aerospace Solutions Ltd.
FLYHT provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry. The Company has patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, AFIRS™ UpTime™, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real time. If an aircraft encounters an emergency, FLYHT's triggered data streaming mode, FLYHTStream™, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real-time. The Company has been publicly traded on the TSX Venture Exchange since 2003 and recently changed its trading symbol from AMA to FLY. Shareholders approved a Company name change from AeroMechanical Services Ltd. to FLYHT Aerospace Solutions Ltd. in May 2012.
AFIRS, UpTime, FLYHT, FLYHTStream and aeroQ are trademarks of FLYHT Aerospace Solutions Ltd.
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This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein. The securities have not been and will not be registered under the U.S. Securities Act, or any state securities laws and may not be offered or sold within the United States or to "U.S. persons" (as such term is defined in Regulation S promulgated under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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.
