Surf Air Mobility Inc on Friday announced an updated investment commitment from the Luxembourg-based investor Gem Global Yield LLC SCS (GGY) to purchase up to US$400 million of Surf Air Mobility common stock over a specified term.
The Surf Air parent also said it may request advances under the share subscription facility of up to US$100 million, consisting of four incremental advances of up to US$25 million each.
As well, Surf Air Mobility stated that it has entered into a share purchase agreement to issue 1 million of its shares to GGY for a purchase price of US$25 per share.
The agreement is expected to close when Surf Air Mobility becomes a public company, subject to certain conditions.
Surf Air Mobility recently announced its intention to go public through a direct listing on the New York Stock Exchange, to be preceded by a merger with Southern Airways Corporation, the parent of Southern Airways Express, which is also still subject to closing conditions and regulatory approval, ch-aviation reported.
Surf Air is a virtual regional carrier providing scheduled routes and on-demand charter flights operated by third parties, which also intends to develop electric powertrain technology with commercial partners to electrify existing fleets, starting with hybrid-electric and fully-electric variants of the Cessna (twin turboprop) 208B Grand Caravan EX.
GEM Global Yield Fund, meanwhile, is a direct lending fund managed by Global Emerging Markets Group (GEM), a US$3.4 billion alternative investment group that manages diverse investment vehicles.
In 2020, Surf Air Mobility secured US$200 million in funding from GEM.
Contact Sean at sean@proactiveinvestors.com