Surf Air Mobility (SRFM) anticipates reducing potential future equity dilution by approximately 90%. As part of its new financing strategy, with increased reliance on debt versus equity financing, the company plans to amend the registration statement associated with its share subscription facility with GEM Global Yield. The anticipated amendment, which will require SEC review, will reflect the company’s plan to significantly reduce its use of the equity backed GEM facility by reducing the number of shares registered by approximately 35.6 million shares. This follows Surf Air’s $50M term loan, which enables the company to continue to execute on its Transformation Plan without the need for the company to draw significant funds from the GEM facility in the near term. The amended registration statement is expected to reflect the company’s intention to access no more than $15M in 2025 under the GEM facility going forward which, at current prices, represents approximately 4.4 million shares. The reduction of approximately 35.6 million shares that the company would potentially issue under the GEM facility is equivalent to an approximate 90% reduction in potential dilution. The company has also strengthened its balance sheet and as a result, the company has a substantially reduced cash burn. During 2025 the company intends to exit unprofitable flight routes, deploy four recently acquired new aircraft to more efficiently service certain routes, address maintenance backlogs, and leverage its SurfOS software platform to drive efficiencies. The company expects that revenue in 2025 will still exceed $100M. Also, the company expects that it will achieve profitability in its airline operations in 2025.
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