Gulfstream International Group, Inc. (GIA) hopes to net Gulfstream approximately $5.17 million in proceeds from the sale of the Senior Debentures and Junior Debentures, net of fees and expenses. Proceeds of the financings will go toward repaying an existing secured line of credit, to finance the company's expansion of service in its new Cleveland, Ohio hub and for general working capital purposes.
It launched a new hub operation last month as a Continental Connection at Cleveland serving Dubois and Franklin, Penn as well as Lewisburg, W. Va. This month is begins service to Bradford, Penn and Jamestown, N.Y.
The company announced an agreement to sell to an unnamed institutional investor $5.10 million in face amount of secured original issue discount debentures (the "Senior Debentures"). In addition, Gulfstream will issue to the investor a warrant to purchase 578,870 shares of Gulfstream common stock, exercisable at nominal value. The investor has the right to require Gulfstream to repurchase the warrants if they are not exercised within three years.