Global Crossing Airlines Group Inc. announced that it has entered into a subscription agreement private placement to issue 15% non convertible senior secured notes, and common stock warrants for the gross proceeds of $35,000,000 in its first tranche on August 2, 2023. The transaction included participation from new investor Axar Capital Management LP and its affiliates. The Notes will bear interest at a fixed rate of 15% per annum and include an upfront fee of 1.75% of the principal payment and matures on August 2, 2029.

The company will be permitted to prepay all of the Notes as follows beginning on August 2, 2025 subject to a redemption premium. At closing, the investors will be issued 10,000,000 warrants exercisable into one share of common stock at an exercise price of $1 per share, with such warrants expiring on June 30, 2030. As part of the financing, Andrew Axelrod of Axar Capital Management LP will join the Board.