Jetlines files preliminary IPO

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Longtimer
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Jetlines files preliminary IPO

Post by Longtimer »

UNITED STATES./

VANCOUVER, Nov. 26, 2014 /CNW/ - Inovent Capital Inc. (TSX Venture – IVQ.P, "Inovent") and Canada Jetlines Ltd. ("Jetlines") announce the joint filing of a preliminary long form prospectus with the securities regulatory authorities in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia in connection with a public offering of common shares (the "Shares") of Inovent (the "Offering"). The completion of the Offering is subject to a minimum subscription for aggregate gross proceeds of $50,000,000, subject to an over-allotment option.

The Offering is being made in conjunction with an amalgamation of Inovent and Jetlines which, if completed, will constitute Inovent's Qualifying Transaction (the "Transaction") in accordance with the policies of the TSX Venture Exchange ("TSXV").

The Offering will be led by AltaCorp Capital Inc. and Euro Pacific Canada Inc. as co-lead agents and joint bookrunners. Final pricing and determination of the number of Shares to be sold pursuant to the Offering and over-allotment option will occur immediately prior to the filing of the final long form prospectus in respect of the Offering.

Jetlines is a private aviation company with an overall business plan to commence domestic scheduled point-to-point air service in mid-2015 from a base at the Vancouver International Airport. Jetlines will apply an ultra-low cost operating model that focuses on generating new passenger demand from what management believes is currently an unserved market of price sensitive customers in Canada. Jetlines intends to select routes which avoid direct competition with currently operating airlines (where possible) and focus on cost discipline in order to keep operating costs low.

The Offering is subject to certain conditions including, but not limited to, the execution of a definitive agency agreement with the agents, the concurrent closing of the Transaction, the approval of the shareholders of each of Inovent and Jetlines, and the receipt of all necessary approvals, including the approval of the TSXV and the applicable securities regulatory authorities.

On behalf of the board of Inovent:

INOVENT CAPITAL INC.
Per: "David Brett"

David H. Brett, MBA
Chief Executive Officer & Director
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pianokeys
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Re: Jetlines files preliminary IPO

Post by pianokeys »

PD had an IPO a few years back, reverted back to private, or "deferred the IPO" due to lack of interest.

Not sure how much interest this IPO will generate. Maybe we can all get in on some penny stock?
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cap41
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Re: Jetlines files preliminary IPO

Post by cap41 »

Tell me how to get it without using a broker, I ll buy some.
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Re: Jetlines files preliminary IPO

Post by bmc »

I have a dream. Give me your money. I hope it works out.
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Re: Jetlines files preliminary IPO

Post by cdnpilot77 »

pianokeys wrote:PD had an IPO a few years back, reverted back to private, or "deferred the IPO" due to lack of interest.

Not sure how much interest this IPO will generate. Maybe we can all get in on some penny stock?
The difference is that PD had a route structure, infrastructure, airplanes and a customer base and still not enough interest was gained to continue the IPO....I don't see any of that with Jetlines. Investing would be like throwing money in a burning barrel to keep the Jetlines "Execs" warm.
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Re: Jetlines files preliminary IPO

Post by ahramin »

How many 100s of millions was the PD IPO supposed to be?
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Re: Jetlines files preliminary IPO

Post by peeelot »

So to anyone who's considering investing in a start up airline. Take whatever money you were going to invest give it to me and I will kick you in the nuts! At least this way by the end of it your will keep 50% of your $$ and yes sore nuts but a lot better than $0 and a sore A$$.
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Re: Jetlines files preliminary IPO

Post by HavaJava »

Don't you love how news like this comes out right before Westjet pilots have to vote to ratify their contract....naw, must just be a coincidence
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leftoftrack
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Re: Jetlines files preliminary IPO

Post by leftoftrack »

HavaJava wrote:Don't you love how news like this comes out right before Westjet pilots have to vote to ratify their contract....naw, must just be a coincidence
I'm confused why does an IPO from a non existent airline that's going to start with 2 airplanes affect a contract ratification with group of 1200 pilots who's terms were negotiated prior to The filling.
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Re: Jetlines files preliminary IPO

Post by bizjets101 »

Image
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Re: Jetlines files preliminary IPO

Post by Johnny#5 »

Air Today.....gone tomorrow.
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Re: Jetlines files preliminary IPO

Post by ThatArmyGuy »

Thanks for posting the photo. I'll go pay for a PPC so that I'm good to go when they open up.

I've also saved up some money so I can pay them to fly it - I think it's only $50/hr. Beats renting a 172 and it's cheaper than being a copilot at that outfit in the States.

Jetlines - No, I'm flying YOUR way.
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Re: Jetlines files preliminary IPO

Post by Liquid Charlie »

When they say ultra low cost model can that be summed up by the word Jetsgo or Ryan -- everyone run out and borrow money for training and don't ever think you can use company electricity to charge your mobile phone -- oh ya throw in -- you must pay your own expenses for sim and recurrent training --- ah --progress is wonderful --
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Re: Jetlines files preliminary IPO

Post by Old fella »

Liquid Charlie wrote:When they say ultra low cost model can that be summed up by the word Jetsgo or Ryan -- everyone run out and borrow money for training and don't ever think you can use company electricity to charge your mobile phone -- oh ya throw in -- you must pay your own expenses for sim and recurrent training --- ah --progress is wonderful --

Being an old guy, I would hope the younger set of guys/gals would steer clear of such companies if as what is being suggested holds true. I have every reason to believe it is, just remember this Jetsgo outfit and what went on there. I really hope you younger kids are as smart as I think you are. Outfits such Jetlines is pipe dreaming at it's best, there are too many examples over the years to suggest otherwise. Don't waste your money......
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Re: Jetlines files preliminary IPO

Post by Legacy »

!00% agreed Old Fella. These kind of companies are just here to make the quick buck on the back of the employees. I am sure they know deep down that they will be belly up in a few years. Polygraphs should become mandatory with execs! Would save us a lot of nightmares
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Re: Jetlines files preliminary IPO

Post by cncpc »

I think your real answer to all this is going to be found in the manner in which this is to be financed and go on public markets.

There is a new type of incipient stock market company on the Toronto junior exchange. I'm not sure this IPO involves that, but I think it is a company which is composed of people with lots of experience taking companies public. They don't get a full listing, but they can raise up to 5 million without a prospectus or offering memorandum. Something like that. I think once they've done that, they can go for a full IPO, probably on the junior.

I don't think its a reverse takeover of a listed shell deal.

I do know that a jet airline which starts with two aircraft isn't to be taken seriously. Which begs the question of why someone is taking it seriously.
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Re: Jetlines files preliminary IPO

Post by cncpc »

Checked a bit further and Innovent Capital is one of those capital pool companies in a newish scheme set up by the TSX. Rather than explain it, go to the second and third pages of this TSX pdf and pretty good rundown on how it works there. This is to be the "qualifying transaction" for Innovent.

http://www.tmx.com/en/pdf/CPCBrochure.pdf
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Re: Jetlines files preliminary IPO

Post by ahramin »

cncpc wrote:I do know that a jet airline which starts with two aircraft isn't to be taken seriously. Which begs the question of why someone is taking it seriously.
Didn't Westjet start with 2 airplanes? How many planes do you need to be taken seriously?
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Re: Jetlines files preliminary IPO

Post by bmc »

Plus fuel prices are coming down, which should impact consumers, stimulate more flying and help these guys launch.

You can start a limited operation with two machines. Any idea on sched delivery of subsequent machines?
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Re: Jetlines files preliminary IPO

Post by cncpc »

ahramin wrote:
cncpc wrote:I do know that a jet airline which starts with two aircraft isn't to be taken seriously. Which begs the question of why someone is taking it seriously.
Didn't Westjet start with 2 airplanes? How many planes do you need to be taken seriously?
More than two.

Two airplanes, operating on routes that the big boys have declined to operate, at cheap prices, cannot support the overhead of a 705 carrier doing effective marketing and providing adequate customer service.

Think about it this way. The theory is that somewhere out there, there are routes that can be operated at a profit with low yields and 120-130 seat aircraft. The question is how these routes have been overlooked by the Q400, Dash 8 300 or 100 crowd? Yes, it may be that these routes have stage lengths that don't suit turboprops, but there can't be many of them that aren't being served through a one stop hub.

I do think that there are some ideas that may come up in the next ten years that deserve financing when its all put together. I'm afraid that something like this, which is more of a share selling gimmick than a long term business, may sour the market for better financing proposals that come over the next while.

I had to look up the initial Westjet fleet thing. Found this in some UVic tribute to Clive Beddoes.

That hard work has spurred WestJet's growth from a three-aircraft-five-destination operation into a $2-billion company with a network that covers a good chunk of North America.
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Re: Jetlines files preliminary IPO

Post by cncpc »

bmc wrote:Plus fuel prices are coming down, which should impact consumers, stimulate more flying and help these guys launch.

You can start a limited operation with two machines. Any idea on sched delivery of subsequent machines?
What are they starting with? I remember something about A319s?
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Re: Jetlines files preliminary IPO

Post by Told Card Writer »

The Ryan Air cost structure we can only hope is confined to the passengers. If they do expect or want air crews to pay for their own training then they shouldn't be allowed to start up at all. The Airbus SIM time in North America might be an issue, especially in Canada. Which would mean it would have to be in the USA. Since 911 the USA is understandably cautious about people going down to do flight training of any kind there. So that is going to limit who they hire especially when recurrent PPC time comes around. Foreign type rated guys might be able to get into Canada but depending on which country they are from good luck getting into the USA for a recurrent.

So lets hope they do the right thing, type rate people, and treat them properly. That is an Airline that would be worth working for and welcome here.
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Re: Jetlines files preliminary IPO

Post by ajet32 »

Sim time won't be an issue. Airbus has a big training centre in Miami and I don't know of a single Canadian who has been refused training in the USA. The TSA process is a bit of a pain and an extra expense but all or most of the pilots who fly the 737NG for anyone but the Teal team training the US all the time .
Paying for the training is the norm in Europe and Asia. Let's hope it doesn't start here in Canada.
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Re: Jetlines files preliminary IPO

Post by boeingboy »

It was 319's - then 737-700's and now 737-3 or 400's.

They cant even make up their mind what aircraft they want to use. This whole thing is a joke.
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Re: Jetlines files preliminary IPO

Post by boeingboy »

You cant compare this to WestJet - that is like apples and oranges.

WestJet had timing on their side Canadian had just gone under and there was no real alternative to Big Red, and they were low cost - but not Ryan air type low cost.
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