- Global Crossing (JET) has received an interim order from the Supreme Court of British Columbia to spin out its wholly-owned subsidiary, Canada Jetlines
- Canada Jetlines is a low-cost carrier that intends to begin operations as a tour operator in the USA and Mexico
- Each Global Crossing shareholder as of June 24 will receive one share of Jetlines for every two shares of Global Crossing held
- Post spin-out, Jetlines and Global Crossing will operate as separate companies
- Global Crossing Airlines Group intends to fly as an ACMI and wet lease charter airline serving U.S., Caribbean and Latin American markets
- Global Crossing (JET) is down by 1.4 per cent and is currently trading at $2.12 per share
Global Crossing (JET) has received an interim order from the Supreme Court of British Columbia to spin out its wholly-owned subsidiary, Canada Jetlines.
Canada Jetlines is a low-cost carrier that intends to begin operations, pending CTA approval, as a tour operator in the USA and Mexico. The carrier also intends to operate a fleet of Airbus A320 aircraft providing safe, reliable, friendly and consistent service to Canadians.
Each Global Crossing shareholder as of the record date will receive one share of Jetlines for every two shares of Global Crossing held.
Subject to receipt of final approval from the Supreme Court of British Columbia, the record date will be Thursday, June 24, 2021.
In order to comply with regulatory requirements for foreign control of a Canadian airline, Jetlines will establish a dual class share structure of common shares and variable voting shares.
Common shares carry one vote per share, while the number of votes for each variable voting share is subject to adjustment in the event that foreign voting control limits are exceeded as prescribed by the Canada Transportation Agency.
As a result, Canadian shareholders of Global Crossing will receive Jetlines common shares and non-Canadian shareholders of Global Crossing will receive Jetlines variable voting shares.
After distribution, Global Crossing will retain 25 per cent of Jetlines shares, with 75 per cent held by Global Crossing shareholders as of the record date.
Post spin-out, Jetlines and Global Crossing will operate as separate companies with separate management teams and boards of directors.
Global Crossing Airlines Group intends to fly as an ACMI and wet lease charter airline serving U.S., Caribbean and Latin American markets.
Global Crossing (JET) is down by 1.4 per cent and is currently trading at $2.12 per share as of 2:33 pm ET.