MEXICO CITY, Sept. 9, 2020 /PRNewswire/ -- Volaris* (NYSE: VLRS and BMV: VOLAR), announces a summons for an extraordinary general shareholders meeting to be held on September 18, 2020.

Volaris logo

Volaris intends to raise up to MXN3.5 billion Mexican pesos in order to strengthen its capital position and take advantage of potential growth opportunities. Therefore, Volaris is evaluating different financing alternatives and is requesting shareholder approval for the issuance of new shares that can be used to raise capital through, among other things, a rights offering, the outright sale of shares, or through the issuance of debt/convertible debentures. Any such offering could be carried out individually or in conjunction with other transactions for a period of up to 12 months from the date shareholder approval is obtained. The final terms and conditions of any such offerings will be delegated to the Board of Directors and will be based on the prevailing market conditions at the time of offering.

Volaris continues to focus on liquidity preservation and generation, ensuring continued balance sheet strength which will give the Company what it believes to be a significant competitive advantage. The net proceeds from the capital raise are intended to further enhance Volaris' liquidity position to face a challenging and uncertain operational environment due to the COVID-19 pandemic and are expected to provide Volaris with greater financial flexibility to move quickly to capitalize on opportunities that will help improve the position of the Company in the aviation market.

While the domestic market capacity is shrinking by around a third due to restructuring processes at other Mexican carriers, the Volaris ultra-low-cost business model has allowed the company to ramp-up more quickly and strengthen its competitive position. As a result of recent changes in the marketplace, Volaris expects the additional capital from such a capital raise will allow it to take advantage of potential opportunities to grow its network and expand its fleet.

A courtesy English translation of the shareholders' meeting agenda and related information are attached as exhibits.

The information included does not provide information on the company's future performance. Volaris' future performance depends on many factors and it cannot be inferred that any period's performance or its comparison year over year will be an indicator of a similar performance in the future.

About Volaris:

*("Volaris" or the "Company") (NYSE: VLRS and BMV: VOLAR), is an ultra-low-cost carrier (ULCC), with point-to-point operations, serving Mexico, the United States and Central America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since beginning operations March 2006, Volaris has increased its routes from five to more than 142 and its fleet from four to 83 aircraft. Volaris offers more than 304 daily flight segments on routes that connect 41 cities in Mexico and 21 cities in the United States with one of the youngest fleets in The Americas. Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico and in selected destinations in the United States and Central America. Volaris has received the ESR Award for Social Corporate Responsibility for eleven consecutive years. For more information, please visit: www.volaris.com

Investor Relations contact: María Elena Rodríguez & Andrea González/ Investor Relations / ir@volaris.com / +52 55 5261 6444

Media contact: Gabriela Fernández / volaris@gcya.mx / +52 55 5246 0100

 

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SOURCE Volaris

Copyright 2020 PR Newswire

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