FLYHT Aerospace Solutions Ltd. (TSX.V: FLY) Announces Closing of Final Tranche of Proposed Debt Financing and Issues Stock Options

FLYHT Aerospace Solutions Ltd. (the “Corporation” or “FLYHT” ) (TSX VENTURE:FLY) is pleased to announce that it has closed the final tranche of its previously announced debt offering of non-convertible debentures (“Debentures”) (see press releases dated March 18, 2013 and April 18, 2013).

Pursuant to this closing, the Corporation will issue an aggregate $255,000 of Debentures (of which $5,000 of debentures were issued to an officer of the Corporation). The details of the debt financing are as follows: the Debentures will mature on June 30, 2016 and bear interest at a rate of 12% per annum on the contributed amounts, which shall be accrued and paid annually in arrears commencing December 1, 2013. Purchasers of Debentures will receive a capital discount premium of 10% on the financing, meaning that for every $1.00 Debenture acquired, the Corporation shall owe, on the maturity date, principal equal to $1.10 to the Debenture holder. The purchasers of the Debentures will also be issued one bonus common share of the Corporation for every $1.00 principal amount of Debentures acquired pursuant to the offering. A total of 255,000 bonus common shares were issued under this final tranche. All of the securities issued hereunder are subject to a 4-month hold period. The Debentures will not be listed on any stock exchange and are not convertible into common shares of the Corporation.

The net proceeds of the offering will be used for the completion of key certifications (STC’s) of the Corporation’s next generation product, the AFIRS™ 228 (Automated Flight Information Reporting System), and for working capital and business development objectives.

The Corporation closed on an aggregate $2.1 million of Debentures (pursuant to two tranches) which the Corporation anticipates will be sufficient to meet the anticipated needs of FLYHT. Management of the Corporation is very thankful to its loyal shareholders as well as management and staff for participating in the financing. FLYHT continues to monitor its spending and is working hard to increase revenues which coincide with Corporation’s objective to be cash flow positive by the end of 2013.

The debentures are secured against all personal property of the Corporation, including the Corporation’s intellectual property and are subordinated in right of payment to all existing and future secured bank and/or governmental indebtedness of the Corporation and any existing security already registered against the Corporation’s assets.

Finder’s fees of $4,125 were paid to an eligible finder for their assistance on this closing.

FLYHT also wishes to report that it recently granted incentive stock options to acquire up to 50,000 common shares, subject to regulatory approval, to a recently hired technical employee under the stock option plan approved at the Annual and Special Meeting of shareholders on May 7, 2013. The stock options are exercisable at an exercise price of $0.25 per share. All of the options granted vest immediately and expire on December 31, 2106. A maximum of 10% of the issued and outstanding shares are reserved under the Company’s stock option plan. The options, and any common shares issued upon exercise of the stock options are subject to a four-month resale restriction.