US business jet operator FlyExclusive (JRE, Kinston) has entered into a USD25 million securities purchase agreement with an investment vehicle managed by EnTrust Global and EG Sponsor LLC. The investment entity will buy 25,510 shares of Series B convertible preferred stock (with a par value USD0.0001 per share) at USD1,000 per share.

"This equity investment represents a significant milestone in our strategic plan to upgrade and increase the size of our fleet,” said flyExclusive CEO Jim Segrave. “The investors have been exceptional partners, and their commitment to flyExclusive will allow us to execute our vertical integration strategy and deliver a best-in-class experience for our customers."

Under the agreement's terms, flyExclusive issued 20,408 shares of Series B convertible preferred stock and a warrant to purchase up to 4,000,000 shares of company’s Class A common stock, par value USD0.0001 per share, receiving gross proceeds of approximately USD20.4 million. flyExclusive plans to issues the remaining 5,102 shares of Series B convertible preferred stock and a warrant to buy up to 1,000,000 shares Class A stock to EG Sponsor on or before August 15, 2024, receiving an additional USD5.1 million.

Separately, flyExclusive has announced a first-quarter 2024 operating loss of USD27.4 million (a 226% increase on the comparable first-quarter 2023 loss). The airline cited increased costs in operations, sales, and administration. The loss was despite a 3.8% year-on-year increase in revenue to USD79.9 million. As of March 31, 2024, flyExclusive's cash and cash equivalents stood at USD5.34 million, around half the comparable 2023 figure. The securities purchase agreement with EnTrust and EG Sponsor addresses the immediate liquidity challenge.

According to ch-aviation fleets data, flyExclusive operates 93 aircraft, including one Bombardier Challenger 350, four Citation Encores, thirty-five Citation Excels, fourteen Citation Jet 3s, nine Jet3 +, seven Citation Sovereigns, nine Citation X, seven Citation XLS, three XLS+, and four Gulfstream GIV-SPs. flyExclusive offers clients access to its aircraft via on-demand charter, club memberships, and fractional ownership programmes.