Discovery Air Announces Filing of Preliminary Short Form Prospectus for Rights Offering

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TORONTO, March 14, 2014 /CNW/ - Discovery Air Inc. (DA.A) ("Discovery Air" or the "Corporation") today announced that it has filed a preliminary short form prospectus (the "Prospectus") in each of the provinces and territories in Canada in connection with a rights offering in order to raise $15,000,000 of equity capital through the sale of its Class A common voting shares (the "Class A Shares") and Class B common variable voting shares (the "Class B Shares", and together with the Class A Shares, the "Common Shares") of Discovery Air (the "Offering"). The Offering was previously announced on February 24, 2014. A copy of the Prospectus can be found on SEDAR at www.sedar.com.

Clairvest Group Inc. has agreed, subject to certain conditions, to purchase from the Corporation such number of Common Shares that are available to be purchased, but not otherwise subscribed for under the Offering, up to a predetermined cap (as further described in the Prospectus).

The record date, the expiry date and the number of rights required to purchase one Common Share will be determined at the time of filing of a final short form prospectus. Holders of Common Shares that fully exercise their rights will be entitled to subscribe for additional Common Shares, if available, that were not subscribed for by other rights holders. The rights will be exercisable for at least 21 days following the date of mailing of the final prospectus.

This Offering is subject to regulatory approval, including the approval of the Toronto Stock Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of the securities under the securities laws of such jurisdiction.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements (as defined in applicable securities laws) regarding Discovery Air and/or its subsidiaries. Forward-looking statements by definition are based on assumptions and, as a result, are subject to risks and uncertainties. As a result of such risks and uncertainties, actual results may differ materially from those discussed in forward looking statements, and readers should not place undue reliance on such statements.

With respect to the matters described in this news release, specific risks include the risk that all regulatory approvals required to complete the Offering are not obtained and/or that the conditions precedent to Clairvest Group Inc.'s purchase of Common Shares that are available to be purchased but not otherwise subscribed for under the Offering are not satisfied.

Forward-looking statements represent expectations as of the date they are made, and Discovery Air disclaims any intention or obligation to update or revise any forward-looking statements it may make, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

ABOUT DISCOVERY AIR AND ITS SUBSIDIARIES

Discovery Air is a Canadian specialty aviation company operating over 160 aircraft with approximately 850 team members. Its subsidiaries provide airborne training to the Canadian military, helicopter operations, air ambulance services, airborne fire services, fixed-wing air charter services, expediting and logistics support, and a range of maintenance, repair, overhaul, modification, engineering and certification services.

Discovery Air's Class A common voting shares and unsecured convertible debentures trade on the Toronto Stock Exchange (symbols DA.A and DA.DB.A, respectively).

SOURCE: Discovery Air Inc.

Sheila Venman, Investor Relations, [email protected], [phone]