FLYHT Announces a $5 Million Unsecured Debenture Arrangement

CALGARY, AB / ACCESSWIRE / May 29, 2024 / FLYHT Aerospace Solutions Ltd. (TSXV:FLY)(OTCQX:FLYLF) (the "Company" or "FLYHT") is pleased to announce that the Company has executed an unsecured debenture in the principal amount of $5,000,000 (the "Debenture") with Pinnacle Island II LP (the "Lender"), an unrelated third-party lender. The additional capital is expected to provide significant financial resources for the Company to pursue additional Supplemental Type (STC) certifications and to accelerate the commercialization efforts of its 5G aviation and weather solutions product lines.

"This loan arrangement raises significant capital for FLYHT to support our growth plans," said Kent Jacobs, President and Interim CEO. "Our team is pursuing a number of attractive large deals for Edge, Edge+, FLYHT-WVSS-II hardware and recurring software services. We will use the incremental capital to move swiftly to seize these opportunities and support their working capital requirements, while continuing to adhere to the strict cost discipline that has been producing year-over-year decreases in G&A across the rest of the organization. We appreciate the confidence in our future, and in particular the potential value of our AFIRS Edge product line."

The Debenture will carry a term of three years, with annual interest of 12% payable on a quarterly basis. Proceeds will be discounted by 5% (with such discount fee for the benefit of the Lender). On the closing date of the Debenture, as additional consideration for the loan, the Company will issue 2,000,000 common share purchase warrants (the "Warrants"), with each Warrant exercisable for a period of three (3) years into one common share for the exercise price equal to the higher of: (i) a 12.5% premium to the 20-day volume weighted average price at issuance on the Debenture closing date; or (ii) the closing price of the Company's common shares on the trading day immediately preceding the Debenture closing date.

Paradigm Capital Inc. acted as a financial advisor to FLYHT on this transaction and was paid a cash commission equal to 4% of the total loan amount.

The delivery of the Debenture and the issuance of the Warrants are subject to the final approval and acceptance of the TSX Venture Exchange. It is anticipated that closing will occur as soon as practical after the TSX Venture Exchange has approved the Debenture and its terms.

About FLYHT Aerospace Solutions Ltd.

FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS™. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT's hardware products can also be interfaced with FLYHT's proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.

FLYHT is headquartered in Calgary, Canada, and is an AS9100 Quality registered company. For more information, visit www.flyht.com.

Cautionary Note Regarding Forward-Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur Although FLYHT believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. FLYHT cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include but are not limited to global economic conditions, industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. FLYHT undertakes no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Contact Information:

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

SOURCE: FLYHT Aerospace Solutions Ltd.