Jet.AI Inc. (NASDAQ: JTAI) is experiencing a remarkable surge in its stock value after announcing a definitive agreement to sell its aviation business to flyExclusive Inc. As of the latest market check, JTAI shares were trading at $6.35, reflecting a 146.12% increase.
Strategic Acquisition to Strengthen Private Aviation
Jet.AI has formalized an agreement with flyExclusive, a leading publicly traded provider of private jet charter services. Because both firms operate comparable aircraft, flyExclusive, the fifth-largest operator in the sector by hours flown, provides a good strategic synergy with JTAI. By strengthening its fleet capabilities and market position, this purchase helps flyExclusive achieve its 2025 expansion goals.
The deal will be carried out once Jet.AI spins out its aviation business into a distinct company called “SpinCo.” After everything is finished, JTAI stockholders will keep their current shares and get more Class A common shares in flyExclusive, while flyExclusive will buy SpinCo.
Improving Market Position and Shareholder Value
Both businesses stand to gain a great deal from this transaction. FlyExclusive obtains access to more resources that help sustain its ongoing expansion in private aviation by incorporating Jet.AI’s aviation assets. Meanwhile, the company will shift its focus entirely toward artificial intelligence solutions, positioning itself as a pure-play AI company.
The all-stock transaction ensures that JTAI shareholders benefit from both sectors—private aviation and AI—by holding shares in both companies. Furthermore, flyExclusive expects the deal to provide enhanced shareholder liquidity and capital for expansion, reinforcing its role as a key industry player.
Financial Structure and Timeline
The purchase price for the acquisition will be based on Jet.AI’s Net Cash, multiplied by a pre-defined premium percentage. A minimum Net Cash balance of $12 million is required for the transaction to proceed, factoring in the company’s available cash, net working capital adjustments, and closing-related expenses.
To meet financial and regulatory closing conditions, Jet.AI has secured a non-binding $50 million term sheet with Hexstone Capital LP. This funding arrangement mirrors the terms of its existing $16.5 million agreement with Ionic Ventures LLC.
The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals, shareholder consent, and financing arrangements.