FLYHT Aerospace Solutions Ltd. (the “Corporation”) (TSX VENTURE:FLY) announced today that the Corporation is proposing a debt offering of non-convertible debentures (“Debentures”) of FLY for aggregate gross proceeds of up to $5,000,000.

The net proceeds of the offering will be used for the completion of key certifications (STC’s) of the Corporation’s next generation product, the AFIRS™ 228 (Automated Flight Information Reporting System), and for working capital and business development objectives.

The details of the debt financing are as follows: the Debentures will mature on June 30, 2016 and bear interest at a rate of 12% per annum on the contributed amounts, which shall be accrued and paid annually in arrears commencing December 1, 2013. Purchasers of Debentures will receive a capital discount of 10% on the financing, meaning that for every $1.00 Debenture acquired, the Corporation shall owe, on the maturity date, principal equal to $1.10 to the Debenture holder. Subject to the approval of the TSX Venture Exchange, it is anticipated that purchasers of the Debentures will also be issued one bonus common share of the Corporation for every $1.00 principal amount of Debentures acquired pursuant to the offering. All of the securities issued pursuant to the private placement are subject to a 4-month hold period. The Debentures will not be listed on any stock exchange.

Completion of this debt offering remains subject to the final approval of the TSX Venture Exchange.