FlyExclusive announces $25 million preferred equity investment

FlyExclusive announced a $25 million preferred equity investment this evening.

The announcement followed the filing of its Q1 financials earlier in the day.

According to a press release, the Kinston, North Carolina-based flight provider has entered into a securities purchase agreement dated August 8, 2024, with an investment vehicle managed by EnTrust Global and EG Sponsor LLC, pursuant to which the Investors agreed to purchase 25,510 shares of Series B Convertible Preferred Stock, par value of $0.0001 per share, at a purchase price of $1,000 per share.”

“This equity investment represents a significant milestone in our strategic plan to upgrade and increase the size of our fleet,” said Jim Segrave, Founder and CEO of FlyExclusive.

The company received its first Challenger 350 earlier this year as part of the fleet refresh strategy.

He added, “The Investors have been exceptional partners, and their commitment to FlyExclusive will allow us to execute on our vertical integration strategy and deliver a best-in-class experience for our customers. We look forward to updating the market on our progress during our next earnings call.”

Pursuant to the securities purchase agreement, FlyExclusive issued 20,408 shares of Series B Convertible Preferred Stock and a Warrant to purchase up to 4,000,000 shares of the Company’s Class A common stock, par value $0.0001 per share to the initial investor on the effective date of the agreement and received gross proceeds of approximately $20.4 million, subject to the payment of transaction expenses.

FlyExclusive expects to issue the remaining 5,102 shares of Series B Convertible Preferred Stock and a Warrant to purchase up to 1,000,000 shares of Common Stock to EG Sponsor on a subsequent closing date by August 15, 2024, and receive additional gross proceeds of approximately $5.1 million.