Jetlines’ Response to Capital Pool Company Allegations
http://www.jetlines.ca/2015/03/16/jetli ... legations/
March 16, 2015
Although it has not yet been served with any legal process, Jetlines wishes to advise that it is aware of a Petition against Jetlines in the Supreme Court of British Columbia dated March 12, 2015 which was filed with the court by Inovent Capital Inc. (Inovent). Jetlines has yet to have released to it by the Court Registry the important supporting documents to the Petition which were filed with the courts.
Inovent is a capital pool company, specifically a shell company that has completed an initial public offering, raised a modest amount of money and obtained a listing on the TSX-V exchange, with the sole purpose of completing a qualifying transaction. On June 27, 2014, Inovent and Jetlines executed a Letter of lntent whereby Jetlines would “go public” by a reverse takeover transaction which would be Inovent’s required qualifying transaction. The non-binding Letter of Intent was superseded by an amalgamation agreement on September 12, 2014. Jetlines regarded the transaction as an expeditious way to “go public” in a relatively short period of time. The transaction was documented by the normal commercial agreements for this type of transaction.
When market conditions resulted in delays in the completion of the reverse takeover transaction, Jetlines requested that Inovent extend the date to complete the transaction beyond the contractual “outside date” of January 31, 2015. When Jetlines received responses from Inovent to this extension request the responses were, in the opinion of Jetlines, inappropriate and not consistent with the expected business relationship of a trusted co-venture partner in the important business of launching an operating airline. Accordingly, Jetlines terminated the agreement in accordance with its terms.
One of the commercial documents for the transaction was a general security agreement in favour of Inovent for certain specified amounts. Jetlines fulfilled its obligations under the general security agreement and, in its opinion, is entitled to have Inovent’s security interest discharged. Jetlines is taking the necessary steps to discharge the general security agreement.
Jetlines has at all times acted legally, ethically and honestly and states that Inovent’s claims are without merit and Jetlines intends to take an appropriate legal actions to respond to the meritless assertions of Inovent.
About Canada Jetlines
With pending successful funding and regulatory approval Jetlines plans to launch an airline in Canada in 2015 that applies Ultra-Low Cost Carrier operating principles. Focusing on stimulating passenger demand through low priced airfares Jetlines will generate additional revenue from the sale of ancillary products and services. The intent is to select routes that avoid direct competition with existing Canadian carriers while maintaining cost discipline to keep operating expenses low.
For more information please contact:
David Solloway
President
Tel: 604-273-5387
david.solloway@jetlines.ca
www.jetlines.ca
