Chorus Aviation Receives Court Approval to increase Permitted Foreign Ownership Levels to the Levels Permitted under the Canada Transportation Act
HALIFAX, May 13, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is pleased to announce that the Ontario Superior Court of Justice (Commercial List) issued earlier today a final order approving the previously announced plan of arrangement under the Canada Business Corporations Act effecting amendments to Chorus Aviation’s articles of incorporation and by-laws to align the permitted level of non-Canadian ownership and control of its voting shares within its articles with those prescribed by the new definition of "Canadian" under the Canada Transportation Act (‘CTA’) as amended in June 2018.
Prior to the CTA amendments, no more than 25% of the voting interests of a Canadian air carrier could be owned or controlled by non-Canadians. The Government of Canada’s stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers. At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25%.
Chorus expects that its amended articles will be filed and become effective on or about May 13, 2019. Further details regarding the amendments are set out in the management proxy circular of Chorus dated March 22, 2019 and in Chorus’s February 19, 2019 news release which are available on SEDAR under Chorus’s profile at www.sedar.com.
About Chorus Aviation
Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010. Chorus’ vision is to deliver regional aviation to the world. Chorus has been leasing its owned regional aircraft into Jazz’s Air Canada Express operation since 2011 and has established Chorus Aviation Capital Corp. to become a leading, global provider of regional aircraft leases. Chorus also owns Jazz Aviation LP and Voyageur Aviation Corp. – companies that have long histories of safe and solid operations that deliver excellent customer service in the areas of contract flying operations, engineering, fleet management, and maintenance, repair and overhaul. Together, the Chorus group of companies can provide a full suite of regional aviation support services. Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the TSX under the trading symbol ‘CHR’.
This news release may contain ‘forward-looking information’. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "potential", "pending", "project", "will", "would", and similar terms and phrases. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those indicated in the forward-looking information. Actual results may differ materially from results indicated in forward-looking information for a number of reasons, including the risk factors identified in Chorus’ Annual Information Form dated February 21, 2019 and in Chorus’ public disclosure record available at www.sedar.com. Statements containing forward-looking information in this news release represent Chorus’ expectations as of the date of this news release (or as of the date they are otherwise stated to be made) and are subject to change after such date. Chorus disclaims any intention or obligation to update or revise such statements to reflect new information, subsequent events or otherwise, unless required by applicable securities laws.
SOURCE Chorus Aviation Inc.