HALIFAX,
NS, Dec. 12, 2024 /CNW/ - Chorus Aviation Inc.
("Chorus") (TSX: CHR) intends to call a special meeting of
shareholders in virtual format only on February 4, 2025 at 11:00
a.m. (Eastern time) (the "Meeting") to seek
shareholder approval of a special resolution for a proposed
consolidation of Chorus' Class A Variable Voting Shares and Class B
Voting Shares (collectively, the "Shares", and the proposed
consolidation, the "Consolidation").
If approved and implemented, the Consolidation would be carried
out on the basis of a ratio within a range of one (1)
post-consolidation Share for every five (5) to ten (10)
pre-consolidation Shares, with the exact ratio to be determined by
Chorus' board of directors (the "Board"). The
Consolidation is also subject to the approval of the Toronto Stock
Exchange ("TSX").
Chorus is seeking authorization to implement the Consolidation
as this is expected to increase the trading price of the Shares,
which management believes should make them more attractive to a
broader range of investors. The reasons for the Consolidation,
including the effects thereof and potential risk factors, will be
set out in the management proxy circular (the "Circular")
for the Meeting.
"Combined with our efforts to deleverage and simplify Chorus'
balance sheet, the proposed share consolidation is another step in
helping unlock the full value of our business," said Colin Copp, President and Chief Executive
Officer, Chorus.
Holders of record of the Shares as of the close of business on
December 23, 2024 will be entitled to
vote on the special resolution for the Consolidation. To be
approved, the special resolution must be passed by at least two
thirds (66 2/3%) of the votes cast by shareholders at the Meeting.
If the special resolution is approved, the Board will have
discretion, for a period of one year following the Meeting, to
determine the exact consolidation ratio and timing of the
Consolidation, including to not proceed with the Consolidation.
Details of the Meeting and how shareholders or their duly
appointed proxyholders can attend and participate in the Meeting
will be set out in the Circular which is expected to be published
on or about January 3, 2025. Chorus
is closely monitoring the continuing Canadian postal strike. If the
postal strike may impact Chorus' ability to deliver the Circular
and related meeting materials for the date of the Meeting, Chorus
will issue a further update by press release. Shareholders are
encouraged to carefully review the Circular, when available, which
will be posted on Chorus' website (www.chorusaviation.com) under
"Investors – Reports" and also under Chorus' profile on SEDAR+ at
www.sedarplus.ca.
Forward-Looking Information
This news release contains forward-looking information and
statements within the meaning of applicable securities laws
(collectively, "forward-looking information"). Examples of
forward-looking information in this news release include statements
and expectations regarding the potential benefits of the
Consolidation to Chorus and its stakeholders. Forward-looking
information involves significant risks and uncertainties that could
cause actual results to differ materially from those anticipated,
including, but not limited to, whether shareholders will approve
the special resolution authorizing the Consolidation, whether the
Board will proceed with implementing the Consolidation following
the receipt of shareholder approval, and the consolidation ratio
that will be selected by the Board if it determines to proceed with
the Consolidation. Actual results could differ materially
from those described in the forward-looking information due to
known or unknown risks, including, but not limited to, the risk
factors described in Chorus' public disclosure record available
under Chorus' profile on SEDAR+ at www.sedarplus.ca.
The forward-looking information contained in this news release
represents Chorus' expectations as of the date of this news release
(or as of the date they are otherwise stated to be made) and is
subject to change after such date. Chorus disclaims any intention
or obligation to update or revise any forward-looking information
as a result of new information, subsequent events or otherwise,
except as required by applicable securities laws. Readers are
cautioned that the foregoing factors and risks are not
exhaustive.
About Chorus Aviation Inc.
Chorus is a Canadian company focused on aviation services
businesses. Our operating subsidiaries are: Jazz Aviation, the
largest regional operator in Canada and provider of regional air services
under the Air Canada Express brand; Voyageur Aviation, a leading
provider of specialty charter, aircraft modifications, parts
provisioning and in-service support services; and Cygnet Aviation
Academy, an industry leading accredited training academy preparing
pilots for direct entry into airlines. Together, Chorus'
subsidiaries provide services that encompass every stage of an
aircraft's lifecycle, including: aircraft acquisition and leasing;
aircraft refurbishment, engineering, modification, repurposing and
transition; contract flying; aircraft and component maintenance,
disassembly, and parts provisioning; and pilot training.
Chorus Class A Variable Voting Shares and Class B Voting Shares
trade on the Toronto Stock Exchange under the trading symbol 'CHR'.
Chorus 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior
Unsecured Debentures due June 30,
2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange
under the trading symbols 'CHR.DB.A', 'CHR.DB.B', and 'CHR.DB.C'
respectively. For further information on Chorus, please visit
www.chorusaviation.com.
SOURCE Chorus Aviation Inc.