Avantair, Inc. (OTCBB:AAIR), the only publicly traded stand-alone private aircraft operator and the sole North American provider of fractional shares and flight hour time cards in the Piaggio Avanti aircraft, today announced that it closed an initial tranche of a PIPE (Private Investment in a Public Entity) financing on Tuesday, June 30th for gross proceeds of approximately $1.4 million. Avantair intends to use the net proceeds from this financing transaction for working capital and general corporate purposes.
Under the terms of the offering, Avantair sold 567,200 Units at $2.50 per Unit to investors. Each Unit consists of two common shares of stock and one warrant to purchase one common share. The warrants have an exercise price of $4.00 per share and are exercisable until June 30, 2012. The initial tranche was consummated under the terms of a securities purchase agreement between Avantair and each of the investors. Avantair has agreed to register the shares issued to the investors and the shares underlying the warrants issued to the investors for resale under the Securities Act of 1933, as amended. The Company expects to close any additional sales of Units in the offering by July 31, 2009.