Alas Aviation Corp. Signs Term Sheet for Required $18 Million Cygnus Financing Arranged by New York Investment Banking Firm Wellington Shields

SNELLVILLE, GA—(Marketwired – Oct 16, 2013) – Alas Aviation Corp., (OTCQB: ALAS) (the “Company” or “Alas”), a niche operator of air cargo and related ground service operators through its operating subsidiary Corporación Ygnus Air, S.A. (“Cygnus”), today announced it has secured a Term Sheet for an $18 million financing arranged by New York City investment banking firm Wellington Shields on Monday, October 14, 2013. The executed term sheet provides for the required refinancing of two Boeing 757-200PCF cargo jets and other Cygnus debts. Completion of the funding is subject to final due diligence review of the company’s aircraft assets and financial information.

The $18 million financing with an aviation industry focused financing firm, arranged by Wellington Shields of New York City, satisfies a key refinancing requirement related to Alas’ acquisition of Cygnus and will allow Alas to move forward with its business plan. Madrid, Spain subsidiary Corporación Ygnus Air, S.A. (“Cygnus”) operates two Boeing 757-200PCF cargo jets in support of Iberia Airlines and TNT Express. Wellington Shields provides investment banking, financing and capital market services to Alas.

Wellington Shields’ head of investment banking, Edward Cabrera, said, “We are pleased to arrange the financing for the Cygnus-ALAS transaction which will allow Mr. Leonora and his ALAS team to proceed with the implementation of their business plan with Cygnus and other companies around the world.”

CEO Arnold Leonora stated, “This financing will allow us to move forward with the next steps in our business plan which include both the organic growth of Cygnus and acquisition of our next opportunity, the midwest air charter and shuttle services company. Wellington has been instrumental along the way in this transaction and we are happy to conclude this financing process.”