In a significant development, Jet.AI Inc. (NASDAQ:JTAI), a Delaware-based non-scheduled air transportation company, has entered into a material definitive agreement with Ionic Ventures, LLC. The agreement, dated today, outlines Ionic's commitment to abstain from exercising its legal rights under a previous Securities Purchase Agreement (SPA) and related documents, in relation to certain company transactions.
The transactions in question include Jet.AI Inc.'s amendment filing to its Form S-1 registration statement and a proposed registered direct offering. Ionic Ventures, holding 200 shares of Jet.AI's Series B Convertible Preferred Stock, has agreed to a modified Conversion Measurement Period beginning March 28, 2024, as per the Letter Agreement.
Jet.AI Inc., previously known as Oxbridge Acquisition Corp., has its principal executive offices in Las Vegas, Nevada. The company's stock is traded on The Nasdaq Stock Market under the ticker symbol JTAI.
In other recent news, Jet.AI Inc. has secured $2.4 million through a stock sale, involving the sale of approximately 26.6 million shares of common stock. The company has also increased its authorized shares of common stock to 200 million and approved an amended Omnibus Incentive Plan, setting the stage for potential future growth. Jet.AI has entered into an agreement with Ionic Ventures, issuing 50 shares of its Series B Convertible Preferred Stock.
In terms of product development, Jet.AI has launched the beta release of the web version of its JetLeg.AI app and is preparing to unveil the second version of its flagship AI solution, CharterGPT, in Q4 2024. The company has also settled with Sunpeak Holdings Corporation, issuing equity in exchange for approximately $2.4 million in claims.
Jet.AI has secured a $280 million debt financing arrangement for the acquisition of Bombardier (OTC:BDRBF) Challenger 3500 aircraft, expected to commence deliveries in 2026. Lastly, the company made amendments to its corporate agreements and securities, affecting shareholder rights and the conversion price of its preferred stock. These developments are part of Jet.AI's ongoing efforts to align its corporate strategies and investor relations.
InvestingPro Insights
Recent financial data from InvestingPro sheds light on Jet.AI's current position. The company's revenue for the last twelve months as of Q2 2024 stands at $14.48 million, with a quarterly revenue growth of 10.42% in Q2 2024. This growth comes despite a challenging year, as evidenced by the year-to-date price total return of -93.57%.
InvestingPro Tips highlight that Jet.AI's price-to-book ratio is notably low at -0.49, which could be of interest to value investors considering the company's recent agreement with Ionic Ventures. Additionally, analysts have set a fair value target of $1.00 for JTAI stock, significantly higher than its current trading price.
These insights provide context to Jet.AI's recent financial maneuvers, including the agreement with Ionic Ventures and the proposed registered direct offering. Investors seeking a deeper understanding of Jet.AI's financial health and prospects can access 11 additional InvestingPro Tips, offering a more comprehensive analysis of the company's position in the non-scheduled air transportation sector.
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