Edition:
United Kingdom

Cargojet Announces Strategic Agreement With Amazon To Provide Air-Transportation Services


Friday, 23 Aug 2019 

Cargojet Inc ::CARGOJET ANNOUNCES STRATEGIC AGREEMENT WITH AMAZON TO PROVIDE AIR-TRANSPORTATION SERVICES.CARGOJET INC - EXPECTS AGREEMENT TO GENERATE ADDITIONAL REVENUE GROWTH AND BE MEANINGFULLY ACCRETIVE TO CARGOJET'S EARNINGS AND CASH FLOWS OVER TIME.CARGOJET INC - CARGOJET WILL ISSUE WARRANTS TO AMAZON IN TWO TRANCHES.CARGOJET INC - FIRST TRANCHE OF WARRANTS WILL VEST OVER A PERIOD OF SIX AND A HALF YEARS.CARGOJET - FIRST TRANCHE OF WARRANTS ALLOWS AMAZON TO BUY UP TO 9.9% OF CARGOJET'S VARIABLE VOTING SHARES AT AN EXERCISE PRICE OF $91.78 PER SHARE.CARGOJET INC - AMAZON WILL ALSO RECEIVE ADDITIONAL WARRANTS TO ACQUIRE UP TO AN ADDITIONAL 5 PERCENT OF CARGOJET'S VARIABLE VOTING SHARES.CARGOJET INC - FIRST TRANCHE OF WARRANTS WILL VEST OVER A PERIOD OF SIX AND A HALF YEARS.CARGOJET - VESTING OF FIRST TRANCHE TIED TO DELIVERY BY AMAZON OF UP TO C$400 MILLION IN BUSINESS VOLUMES DURING SIX AND A HALF YEARS.CARGOJET INC - ENTERED INTO A NEW STRATEGIC AGREEMENT WITH AMAZON.COM NV INVESTMENT HOLDINGS LLC, AN AFFILIATE OF AMAZON.COM.CA, INC.CARGOJET INC - CARGOJET WILL ISSUE WARRANTS TO AMAZON TO PURCHASE VARIABLE VOTING SHARES THAT WILL VEST BASED ON ACHIEVEMENT OF COMMERCIAL MILESTONES.CARGOJET - ADDITIONAL VESTING TIED TO DELIVERY BY AMAZON OF UP TO ADDITIONAL C$200 MILLION IN BUSINESS VOLUMES AFTER FIRST TRANCHE OF WARRANTS IS VESTED.