Chorus Aviation Inc. (TSX:CHR) announced a private placement of 15,561,600 class B voting shares at an issue price of CAD 6.25 per share for gross proceeds of CAD 97,260,000 on January 14, 2019. The transaction will involve participation from returning investor Air Canada (TSX:AC). The shares will be issued at a 5% premium to the five-day volume weighted average price of the shares of the close of trading on January 10, 2019.

The investor and the company will enter into an investor rights agreement governing the terms of the transaction. Post the closing of the transaction, the company will appoint Michael Rousseau, Deputy Chief Executive Officer and Chief Financial Officer of the investor, to its board of directors and the investor will own approximately 9.99% of the issued and outstanding class A variable voting shares and class B voting shares of the company on a combined basis. The investor will hold the investment shares, for a period of at least 60 months and will participate in the company's dividend reinvestment plan and agree to customary standstill provisions, subject to certain limited exceptions.

The transaction was conditionally approved by the Toronto Stock Exchange and is subject to customary conditions.