Global Crossing Announces Plans for Spin-Out of Canada Jetlines Operations

Miami, Florida--(Newsfile Corp. - September 8, 2020) -  Global Crossing Airlines Inc. (TSXV: JET) (OTC Pink: JETMF) (the "Company" or "GlobalX") is pleased to announce its intention to spin-out its 100% owned Canada Jetlines Operations Ltd. subsidiary to an existing shell company and renaming it Canada Jetlines Vacations ("CJV"). Subject to concluding satisfactory terms, GlobalX intends to provide CJV with aircraft and crews to fly Vacation charters to Florida, Atlantic City and the Caribbean. GlobalX will retain a controlling interest in CJV and is evaluating distributing this residual ownership interest in CJV to its shareholders on a pro-rata basis.

"We believe Canadians seek more alternatives when it comes to airlines and vacation providers," stated Ed Wegel, Chairman and CEO of Global X. "We believe by creating a stand-alone public company committed to serving the Canadian market represents a unique opportunity and will ultimately bring to fruition the long term vision of our original Canada Jetlines shareholders to provide choice to Canadians when it comes to vacation and air travel."

Mr. Wegel added "we have identified funding sources to complete the proposed transaction, subject to completion of a public listing of Canada Jetlines Vacations and other customary conditions".

The completion of this transaction would not affect in any way the current shareholdings of shareholders in Global Crossing Airlines Inc. The completion of this transaction and distribution of any securities to shareholders in the new proposed company is subject to a number of conditions including the completion of legal and tax structuring analysis, identification of a suitable shell company, completion of financing and receipt of required regulatory approvals. There is no certainty the transaction will be completed on the terms proposed or at all. Further details will be provided in subsequent news releases.

About Global Crossing Airlines

GlobalX is a new entrant airline now in FAA certification using the Airbus A320 family aircraft. Subject to FAA and DOT approvals, GlobalX intends to fly as an ACMI and wet lease charter airline serving the US, Caribbean and Latin American markets.

For more information please visit https://www.globalairlinesgroup.com/

For more information, please contact:

Ryan Goepel, EVP and CFO
ryan.goepel@globalairlinesgroup.com
Phone: 305-869-4780

or

Jeff Walker
Vice President
The Howard Group Inc.
Email: jeff@howardgroupinc.com
Tel: 403-221-0915
Toll Free: 1-888-221-0915

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this news release includes, but is not limited to, statements with respect to the Company's intention to fly as an ACMI and wet lease charter airline, the completion of the FAA certification process, the details of the spin-out of Canada Jetlines Operations Ltd., creation and business of CJV, future collaboration with CJL Operations and the distribution of shares of CJL Operations to shareholders of the Company.

In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or " or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to commence airline operations, receipt of financing necessary to complete the spin-out of Canada Jetlines Operations Ltd., a suitable shell company is identified, the accuracy, reliability and success of GlobalX's business model; the timely receipt of governmental approvals; the timely commencement of operations by GlobalX and the success of such operations; the legislative and regulatory environments of the jurisdictions where GlobalX will carry on business or have operations; the impact of competition and the competitive response to GlobalX's business strategy; and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to, the ability to obtain financing at acceptable terms, the impact of general economic conditions, domestic and international airline industry conditions, the impact of the global uncertainty created by COVID-19, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, the ability of management to implement GlobalX's operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits; and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/63302