Jet.AI Announces Non-Recourse Debt Financing for Proposed Fleet Deal
June 04 2024 - 9:00AM
Jet.AI Inc. (“Jet.AI” or the “Company”) (NASDAQ:
JTAI), an innovative private aviation and artificial
intelligence (“AI”) company, announced the arrangement of
non-binding, non-recourse, debt financing related to the proposed
purchase of Bombardier Challenger 3500 aircraft valued at
approximately US$280 million based on today’s list prices. The debt
financing arrangement, in conjunction with the previously announced
Ionic Ventures LLC financing, positions the Company well to execute
on its long planned fleet order in management’s view.
Management’s Commentary:Founder
and Executive Chairman Mike Winston commented, “Today's
announcement marks a significant step forward in our fleet
expansion plan. Following our successful $25 million order with
HondaJet, this new $280 million order with Bombardier for larger
jets would represent a substantial increase in scale. We anticipate
deliveries to commence in 2026, allowing ample time for pre-sales
and operational preparation. Despite being a mature cyclical
industry, private aviation continues to offer attractive returns on
capital investment. This factor, coupled with the increased
likelihood of completing the deal, reinforces our confidence in
this multi-year commitment of hundreds of millions of dollars.”
Background:In December of 2022,
Jet.AI had executed a non-binding letter of intent to acquire five
new Challenger 3500 super-midsize business jets from Bombardier
with the intent of pre-selling fractional interests in those
aircraft. Over the course of the next year and a half, the
particulars of the aircraft’s specifications were negotiated in
detail and the order was upsized for delivery ratably over three
years beginning in early 2026.
For avoidance of doubt, the terms of the debt
financing remain non-binding and confidential.
About Jet.AI:Jet.AI operates in
two segments, Software and Aviation, respectively. The Software
segment features the B2C CharterGPT app and the B2B Jet.AI Operator
platform. The CharterGPT app uses natural language processing and
machine learning to improve the private jet booking experience. The
Jet.AI operator platform offers a suite of stand-alone software
products to enable FAA Part 135 charter providers to add revenue,
maximize efficiency, and reduce environmental impact. The Aviation
segment features jet aircraft fractions, jet card, on-fleet
charter, management, and buyer’s brokerage. Jet.AI is an official
partner of the Las Vegas Golden Knights, 2023 NHL Stanley Cup®
champions. The Company was founded in 2018 and is based in Las
Vegas, NV and San Francisco, CA.
Forward-Looking StatementsThis
press release contains certain statements that may be deemed to be
“forward-looking statements” within the meaning of the federal
securities laws, including the safe harbor provisions under the
Private Securities Litigation Reform Act of 1995, with respect to
the products and services offered by Jet.AI and the markets in
which it operates, and Jet.AI’s projected future results.
Statements that are not historical are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements relate to future events or our future performance or
future financial condition. These forward-looking statements are
not historical facts, but rather are based on current expectations,
estimates and projections about our Company, our industry, our
beliefs and our assumptions. 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 or
the negative of these terms or other similar expressions, but the
absence of these words does not mean that a statement is not
forward-looking. 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 that could cause the actual
results to differ materially from the expected results. As a
result, caution must be exercised in relying on forward-looking
statements, which speak only as of the date they were made. Factors
that could cause actual results to differ materially from those
expressed or implied in forward-looking statements can be found in
the Company’s most recent Annual Report on Form 10-K and subsequent
reports filed with the Securities and Exchange Commission. 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.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Jet.AI assumes no obligation and does not intend to
update or revise these forward-looking statements, whether because
of new information, future events, or otherwise, except as provided
by law.
Contacts:Gateway Group,
Inc.949-574-3860Jet.AI@gateway-grp.com
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