KINSTON, N.C. - flyExclusive, Inc. (NYSEAMERICAN: FLYX), a provider of private jet charter experiences, has secured approximately $25 million through a securities purchase agreement with EnTrust Global, an investment management firm. The deal, which closed on Sunday, involves the sale of 25,000 shares of Series A Non-Convertible Redeemable Preferred Stock at $1,000 per share.
Jim Segrave, Founder and CEO of flyExclusive, expressed enthusiasm about the partnership with EnTrust Global, highlighting the investment as a key step towards becoming a leading vertically integrated private aviation company in the United States.
The capital injection is earmarked for the expansion of flyExclusive's fleet, which is expected to enhance the company's fractional ownership program and improve customer service reliability and convenience.
The preferred stock will accrue dividends at escalating rates annually, starting at 10% per annum and increasing to 16% from the fourth year onwards. The company has structured dividend payouts with a mandatory cash payment component beginning from the third year.
Furthermore, flyExclusive has the option to redeem the shares after the first anniversary of the issue date, while investors can require redemption from the fifth year.
In conjunction with the stock sale, flyExclusive also issued a warrant to EnTrust Global, granting the right to purchase up to 1.5% of the company's outstanding common stock at a nominal exercise price, with specific conditions and timelines for exercise and expiration.
flyExclusive operates a substantial fleet of Cessna Citation jets and offers a range of services including on-demand charter, Jet Club memberships, and fractional ownership. The company prides itself on managing all aspects of the customer experience, with in-house repair and maintenance capabilities at its headquarters in Kinston, North Carolina.
This financial move comes as part of flyExclusive's broader strategy to strengthen its market position within the competitive aviation industry. The company is forward-looking and acknowledges the risks and uncertainties inherent in such a dynamic sector, including potential stock dilution and regulatory changes.
The information in this article is based on a press release statement from flyExclusive, Inc.
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