All,
Scott thought you would be interested in this press release
announcing his investment in Gulfstream International Group, Inc. through
Sah-Vul Strategic Partners, LLC.
Thanks!
Courtney
Gulfstream International Group Receives Strategic
Investment Commitment
Investment will
strengthen Company’s financial position and enable the Company to execute
an expanded strategic plan
Scott R.
Silverman, Managing Partner of Sah-Vul Strategic Partners, to be named Vice
Chairman of Gulfstream’s board of directors
FT. LAUDERDALE, FL – August 30, 2010 – Gulfstream
International Group, Inc. (“Gulfstream” or the
“Company”) (AMEX: GIA) announced today that it has received a
commitment for an investment of up to $2.5 million from Sah-Vul Strategic
Partners, LLC (“Sah-Vul”) that will enable the Company to strengthen
its financial position, and enables it to expand its strategic plan with an
increased focus on growth and maximization of stockholder value. The
commitment includes an initial $1.5 million in the form of a secured
convertible note, and provides an option for Sah-Vul to invest an additional
$1.0 million.
Consummation of the transaction is expected to occur shortly
and is subject to certain conditions, including receipt of third party consents
and approvals.
Gulfstream International Airlines currently operates more
than 150 scheduled flights per day, serving nine destinations in Florida, 10
destinations in the Bahamas, five destinations from Continental Airline’s
Cleveland hub under the Department of Transportation’s Essential Air
Service Program, as well as licensed daily charter flights to Cuba. A
sixth destination from Cleveland is scheduled to start October 1. Gulfstream
has code-share and alliance agreements with Continental Airlines, United
Airlines and Copa Airlines of Panama.
With this investment, the Company will look to expand
service in its current geographic markets and open new regional markets that
are underserved by larger carriers. In addition, Sah-Vul plans to work with the
Company to refinance its fleet of aircraft from Raytheon Aircraft Credit
Corporation and lower its operating costs.
Sah-Vul Managing Partner Scott R. Silverman will assume the
role of Vice Chairman of Gulfstream’s board of directors upon
consummation of the investment. Commenting on the investment, Silverman
said, “Based on our evaluation of Gulfstream’s operations and its
unique model in its geographic markets, we believe the Company presents a
compelling growth opportunity that can return significant value for Sah-Vul and
all GIA stockholders. We believe that our capital and vision can help
Gulfstream as we work to unlock its potential value.”
Silverman is currently the Chairman and CEO of PositiveID
Corporation, and has led public companies including VeriChip Corporation and
Digital Angel Corporation (formerly Applied Digital Solutions, Inc.).
Silverman graduated from the University of Pennsylvania in 1985 and Villanova
University School of Law in 1989.
Thomas A. McFall, Chairman and Senior Executive Officer of
Gulfstream, said, “We look forward to bringing in Sah-Vul as a partner
and new investor, with its significant capital markets experience, a proven
track record of enhancing shareholder value, and its belief in the prospects of
Gulfstream. With the continuing consolidation of larger airlines, the
Company has an unprecedented number of growth opportunities available to it and
we are excited about proceeding to develop those, particularly as we expand our
initial base in the Northeast.”
About Gulfstream International Group, Inc.
Gulfstream is a regional air carrier based in Fort
Lauderdale, Florida, operating for more than 20 years. The Company specializes
in providing travelers with access to niche locations not typically covered by
major carriers. For more information on the company, visit the company's
website at http://www.gulfstreamair.com.
Special Note Regarding
Forward-Looking Statements
In addition to historical
information, this release contains forward-looking statements. Gulfstream may,
from time-to-time, make written or oral forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to, among other things: its business strategy; its value
proposition; the market opportunity for its services, including expected demand
for its services; information regarding the replacement, deployment,
acquisition and financing of certain numbers and types of aircraft, and
projected expenses associated therewith; costs of compliance with FAA
regulations, Department of Homeland Security
regulations and other rules and
acts of Congress; the ability to pass taxes, fuel costs, inflation, and various
expenses to its customers; certain projected financial obligations; estimates
regarding capital requirements; the likelihood that Gulfstream will receive any
of the committed funding; and any other plans, objectives, expectations and
intentions contained in this release that are not historical facts.
These statements, in
addition to statements made in conjunction with the words "expect,"
"anticipate," "intend," "plan,"
"believe," "seek," "estimate" and similar
expressions, are forward-looking statements. These statements relate to future
events or future financial performance and only reflect management's
expectations and estimates. All forward-looking statements included in this
release are made as of the date hereof and are based on information available
to Gulfstream as of such date. The following is a list of factors, among
others, that could cause actual results to differ materially from the
forward-looking statements: changes to external competitive, business,
budgeting, fuel cost or supply, weather or economic conditions; changes in its
relationships with employees or code share partners; availability and cost of
funds for financing new aircraft and the ability to profitably manage its
existing fleet; adverse reaction and publicity that might result from any
accidents; the impact of current or future laws and government investigations
and regulations affecting the airline industry and its operations; additional
terrorist attacks; and consumer unwillingness to incur greater costs for
flights.
Gulfstream assumes no
obligation to update any forward-looking statement. Risk factors, cautionary statements
and other conditions which could cause actual results to differ from
management's current expectations are contained in Gulfstream's filings with
the Securities and Exchange Commission, including Part I, Item 1A, "Risk
Factors," of its Annual Report on Form 10-K for the Year Ended December
31, 2009 and subsequent Form 10-Q filings.
Courtney Cady
Executive Assistant
PositiveID Corporation
T: 561.805.8018
C: 561.601.3543
F: 561.805.8001
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