Volato seeking to raise $25 million

HondaJet fractional operator Volato has already raised $9 million from the offering launched on March 10, according to a March 27 filing

Volato is seeking to raise up to $25 million in convertible debt, according to an SEC filing last week. 

The Atlanta Business Chronicle first reported the news.

According to the SEC filing, the 2021 start-up HondaJet fractional program has already raised $9 million from the offering, launched on March 10.

In June of last year, it filed to raise $20 million in debt.

At the time of the filing, it had already sold just over $3.2 million.

“We ended up raising $19.1 million,” CEO and Co-founder Matt Liotta tells Private Jet Card Comparisons.

In September 2021, it filed to raise up to $5 million, an effort that netted $4.6 million.

Last month Volato reported $103 million in sales last year.

In that announcement, CFO Keith Rabin noted, “Due to the nature of our business model, the majority of these sales are recurring in nature and represent our actual booked sales, not unearned funds held on deposit.”

Speaking about the latest raise, Liotta says, “We are being very capital efficient with our growth. Deposits for planes are expensive.”

In addition to its VLJ fractional program, Volato is launching a fractional program using Gulfstream’s G280 super-midsize jet.

Of the latest raise, Liotta adds, “This shows investors have looked at our business and chosen to invest in it.”

Some of that investment is coming from program customers.

“A number of shareowners, as part of their diligence in buying into our fractional ownership program, have also become investors in the company,” Liotta says.

While Volato is not yet profitable, the CEO anticipates EBITDA profits in 2023.

It also launched a new jet card last week, its second card program.