Jetlines Breaches Amalgamation Agreement - $50 Million Financing Not Proceeding - Termination Notice Rejected

VANCOUVER, Feb. 10, 2015 /CNW/ – David Brett, CEO & Director, Inovent Capital Inc. (TSX Venture – IVQ.P, “Inovent”) reports that its Qualifying Transaction target Canada Jetlines Ltd. (“Jetlines”) has committed numerous material and significant breaches of the amalgamation agreement signed by the parties on September 12th, 2014, as amended (the “Agreement”), including an unauthorized private dilution of its shares on January 16th, 2015. Inovent possesses a general security agreement providing a registered security interest over all of the assets of Jetlines in respect of an unrepaid refundable deposit of $120,000 due to Inovent. Inovent intends to pursue all legal means available to enforce the collection of that debt and its rights under the Agreement.

As a result of Jetlines’ breaches of the Agreement, including the failure to disclose to Inovent certain material adverse developments in the Jetlines business, Inovent no longer considers the disclosures about Jetlines contained in the Inovent-Jetlines Amended and Restated Preliminary Prospectus filed December 19, 2014 to be reliable and, therefore, Inovent is withdrawing its support of that offering document.

Jetlines delivered to Inovent on Friday, February 6, 2015, a surprise notice purporting to terminate the Agreement. Inovent has rejected Jetlines’ termination notice. Jetlines has no such right to terminate under the Agreement. The serious nature and extent of Jetlines’ various breaches blocked and undermined Inovent’s significant efforts to complete the transactions contemplated under the Agreement, resulting in significant damages to Inovent.

“Inovent and its officers and directors have been steadfast supporters of Jetlines, investing countless unpaid hours and almost all of Inovent’s financial resources in the vision to see greater competition in Canada’s aviation sector,” said David Brett, CEO, Inovent. “Inovent is fully resolved to ensure its hard earned rights are honoured.”

On behalf of the board of Inovent:

INOVENT CAPITAL INC.
Per: “David Brett”
David H. Brett, MBA
Chief Executive Officer & Director