Canada Jetlines (AU, Toronto Pearson) is looking to raise start-up capital via a listing on Toronto's TSX Venture Exchange. The ULCC hopeful recently signed a Letter of Intent (LoI) with Inovent Capital, a capital pool company, under which it will negotiate a reverse takeover that would ultimately pave the way for the start-up to list.
According to the deal's terms which are to expire on August 29, 2014, Inovent is to raise CAD10million (USD9.376million) ahead of Jetlines' listing later this year.
To help facilitate the agreement, Jetlines has engaged Euro Pacific Canada to act as its exclusive investment banker.
Last week, rival start-up Jet Naked (Calgary) announced its own plans to raise between CAD30-50million via another investment dealer, Octagon Capital.
Should both start-ups succeed in launching operations, they will face stiff competition from the likes of WestJet (WS, Calgary) and Air Canada (AC, Montréal Trudeau) which currently dominate the Canadian air travel market.
