LAS VEGAS - Jet.AI Inc. (NASDAQ: JTAI), a company that merges private aviation with artificial intelligence, has announced a securities purchase agreement with institutional investors for a registered direct offering. The deal involves the sale of approximately 26.6 million shares of common stock at $0.09 per share, aiming to raise an estimated $2.4 million before fees and expenses. The transaction is anticipated to conclude tomorrow, subject to customary closing conditions.
Maxim Group LLC is serving as the exclusive placement agent for the offering. These shares are being offered under a shelf registration statement, which the SEC declared effective on September 9, 2024. Details on the offering and the accompanying prospectus will be accessible via the SEC's website or directly from Maxim Group LLC.
Jet.AI operates in the software and aviation sectors, offering products like the CharterGPT app for private jet booking and the Jet.AI Operator platform, which helps charter providers increase revenue and efficiency while reducing environmental impact. The aviation side of the business includes jet aircraft fractions, jet card programs, on-fleet charter services, management, and buyer's brokerage.
The company, founded in 2018 and headquartered in Las Vegas and San Francisco, is also known for its partnership with the 2023 NHL Stanley Cup champions, the Las Vegas Golden Knights.
This press release contains forward-looking statements regarding Jet.AI's services, market operations, and projected future results. These statements are based on current expectations and projections and involve risks and uncertainties that could cause actual results to differ materially from those anticipated.
Investors are advised that reliance should not be placed unduly on these forward-looking statements, which are valid only as of their date. Jet.AI does not undertake an obligation to update or revise any forward-looking statements, except as required by law. This article is based on a press release statement.
In other recent news, Jet.AI Inc. has announced a series of corporate developments. The company has approved an amended Omnibus Incentive Plan and increased its authorized shares of common stock to 200 million, setting the stage for potential future growth. Jet.AI also entered into an agreement with Ionic Ventures, issuing 50 shares of its Series B Convertible Preferred Stock.
In addition, Jet.AI has launched the beta release of the web version of its JetLeg.AI app and is preparing to unveil the second version of its flagship AI solution, CharterGPT, in Q4 2024. The company has also settled with Sunpeak Holdings Corporation, issuing equity in exchange for approximately $2.4 million in claims.
Jet.AI has secured a $280 million debt financing arrangement for the acquisition of Bombardier (OTC:BDRBF) Challenger 3500 aircraft, expected to commence deliveries in 2026. Lastly, the company made amendments to its corporate agreements and securities, affecting shareholder rights and the conversion price of its preferred stock. These developments are part of Jet.AI's ongoing efforts to align its corporate strategies and investor relations.
InvestingPro Insights
Jet.AI Inc.'s recent registered direct offering comes at a critical time for the company, as reflected in the latest financial data from InvestingPro. The company's revenue for the last twelve months as of Q2 2024 stood at $14.48 million, with a concerning revenue growth decline of -22.94% over the same period. This context underscores the importance of the $2.4 million fundraising effort to bolster the company's financial position.
An InvestingPro Tip highlights that Jet.AI's stock price has significantly underperformed the market, with a staggering -96.09% total return over the past year. This aligns with the company's decision to offer shares at $0.09, a price that reflects the current market sentiment and recent performance.
Another crucial InvestingPro data point reveals that Jet.AI's operating income margin stands at -94.71%, indicating significant challenges in achieving profitability. This metric provides insight into why the company might be seeking additional capital through the registered direct offering.
For investors looking to dive deeper into Jet.AI's financial health and prospects, InvestingPro offers 11 additional tips that could provide valuable insights for decision-making in this volatile situation.
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