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Flyht Aerospace Solutions (FLYLF) Announces Closing of Private Placement; Shares Flat in Early Trading

Thursday, July 22, 2021 12:55 PM | Kyle Depontes

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Flyht Aerospace Solutions (FLYLF) Announces Closing of Private Placement; Shares Flat in Early Trading

What is going on with FLYLF?

Flyht Aerospace Solutions (FLYLF) reported today that the company has closed its previously announced non-brokered private placement, issuing 8,828,818 common shares at an issue price of $0.75 per share. The sale will result in proceeds to the company of CAD$6,621,615. Directors, officers and senior employees contributed 10% of the offering total.

Shares of FLYLF hovered around $0.7392 as of Thursday at 11:51am.

What does this mean for Flyht Aerospace Solutions?

A private placement is a sale of stock shares to pre-selected investors and institutions rather than on the open market. Although there are less requirements associated with the sale, an investor may demand a higher percentage of ownership in the business. In this case, the closing of the offering created a new company insider who now controls greater than 10% of Flyht's shares.

In a private placement, existing shareholders often sustain a short-term loss from the resulting dilution of their shares. However, stockholders may see long-term gains if the company can effectively invest the extra capital obtained. Flyht stated it intends to use the proceeds from the offering to fund Flyht’s growth initiatives including potential strategic acquisitions, as well as repay in full the outstanding debentures due on July 24, 2021 (CAD$1.8M).

“We are very pleased that several existing shareholders, senior leadership and directors of Flyht see that the actions we have taken in the last year and the obvious imminent recovery of the aviation industry make for a very solid platform for future growth and value creation. This financing solidifies our balance sheet, providing us with the capital to accelerate our growth strategy, including both organic and inorganic initiatives,” said Bill Tempany, Interim CEO of Flyht.

Long-Term Technical Rank - 91

FLYLF has a Long-Term Technical Rank of 91. Find out what this means to you and get the rest of the rankings on FLYLF!

Flyht provides aircraft operators with Actionable Intelligence which provides quantifiable action based upon triggered metrics to drive profitability. This unique capability is driven by AFIRS(TM), a satcom aircraft interface device which enables real-time streaming of flight information, cockpit voice and black box data streaming and TAMDAR(TM) the airborne weather data collector to WMO members.

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