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MISSISSAUGA, ON, Sept. 28, 2016 /CNW/ - Cargojet Inc. (the "Company" or "Cargojet") (TSX: CJT, CJT.A) announced today that it has completed the private placement of 100,000 variable voting shares of Cargojet to James R. Crane, a member of Cargojet's Board of Directors, disclosed in the Company's final prospectus dated September 8, 2016.The Company intends to use the proceeds from the private placement for general corporate and working capital purposes.
"This investment further solidifies my belief in the long-term value of the Cargojet business model and my support of the entire Cargojet team", said James R. Crane.
"Cargojet is very pleased that Jim has shown the confidence and belief in the underlying value of our business and further growth potential", said Ajay K. Virmani, President & C.E.O.
Cargojet is Canada's leading provider of time sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft.
As a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the board of directors, with Mr. Crane declaring his interest, considered and approved the private placement. At the time the transaction was agreed to, the fair market value of the variable voting shares purchased and the consideration paid for such shares was less than 25% of the market capitalization of the Company. As a result, the transaction is exemption from the minority shareholder and valuation requirements contained in MI 61-101. The transaction was conditionally approved by the Toronto Stock Exchange on August 23, 2016. The variable voting shares will be subject to a hold period that expires on January 29, 2017.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Notice on Forward Looking Statements:
Certain statements contained herein may constitute "forward-looking statements" under applicable securities laws, including those in Canada and the U.S. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the issuer's most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Quarterly Financial Statements and Notes thereto and related Management's Discussion and Analysis (MD&A), for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
SOURCE Cargojet Inc.
For further information: For further information regarding this transaction, please refer to the Company's final prospectus dated September 8, 2016 filed on www.sedar.com or contact Pauline Dhillon, Executive Vice President Marketing, Public & Government Relations, Tel: (905) 501-7373, [email protected]