Discovery Air Announces Rights Offering

TORONTO, Jan. 19, 2015 /CNW/ – Discovery Air Inc. (DA.A) (“Discovery Air” or the “Corporation”) today announced that it has filed a preliminary short form prospectus (the “Preliminary Prospectus”) in each of the provinces and territories in Canada in connection with a rights offering (“Offering”) in order to raise up to $11,000,000 of equity capital through the sale of its Class A common voting shares and Class B common variable voting shares (collectively, the “Common Shares”), as applicable.

Under the Offering, Discovery Air will distribute rights to its shareholders to subscribe for Common Shares (the “Rights”) at a price (the “Exercise Price”) per Common Share which is at a 25.01% discount to the prevailing per share market price at the time the (final) short form prospectus in connection with the Offering is filed with securities regulators. Shareholders will receive one Right for each Common Share held. The record date, the expiry date and the number of Rights required to purchase one Common Share will be determined at the time of filing of a (final) short form prospectus. Holders of Common Shares that fully exercise their Rights will be entitled to subscribe for additional Common Shares, if available, that were not subscribed for by other rights holders. The Rights will be exercisable for at least 21 days following the date of mailing of the (final) short form prospectus. The Corporation will apply to list the Rights and the Common Shares issuable upon the exercise thereof on the Toronto Stock Exchange (the “TSX”). This Offering is subject to regulatory approval, including the approval of the TSX.

Discovery Air intends to use the net proceeds from the Offering for general corporate purposes, including funding discretionary growth initiatives and working capital, and to reduce indebtedness.

Details regarding Discovery Air, the Offering, risk factors and other matters required to be addressed under applicable securities laws are included in the Preliminary Prospectus. A copy of the Preliminary Prospectus can be found on SEDAR at www.sedar.com.