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Spelman & Co. Inc. signs letter of intent for Air L.A. secondary offering; Air L.A. stock to trade OTC on the Electronic Bulletin Board.

LOS ANGELES--(BUSINESS WIRE)--Feb. 10, 1995--Air L.A. Inc. (OTC:AILA) was notified Thursday by the NASDAQ Listing Qualifications Committee that, because stockholders' equity had fallen below the minimum NASDAQ listing requirements, effective Feb. 9, 1995, Air L.A. would no longer be permitted to trade on the NASDAQ Small Cap Market but would be listed instead on the Electronic Bulletin Board.

On Feb. 3, 1995, Air L.A. announced that it had finalized its acquisition of St. Paul, Minn.-based Capitol Air and had commenced service between St. Paul and Chicago's Midway Airport.

Wayne Schoenfeld, Air L.A. chairman and CEO, said, "We believe that continuing growth through mergers and acquisitions is a viable strategy for us at this point, and we are discussing mergers with two other carriers at this time."

Based on the soundness of this plan, Richard Woltman, president of Spelman & Co. Inc., who had acted as the underwriter on Air L.A.'s initial offering last May, Friday announced that he had signed, subject to final negotiations and due diligence, a letter of intent to underwrite, on a firm commitment basis, a secondary offering for Air L.A. of $9 million.

Woltman said: "We have seen Air L.A. through its challenging startup phase of developing a new regional airline. Air L.A. is now well-launched. We believe that its plans to continue expanding by consolidating other regional airline operations will result in significant cost reductions, rapid revenue growth and profitability.

"We were very excited with Air L.A.'s first acquisition, Capitol Air, and are, at this time, involved in ongoing discussions with several other merger/acquisition candidates. Spelman & Co. is fully committed to assisting Air L.A. with the capital formation for this expansion."

Schoenfeld said: "Spelman & Co. has been the kind of business partner that every growing company needs. We are disappointed with the position taken by the NASDAQ Qualifications Committee, but with the continuing support of our underwriter and Aeromexico, our code share and marketing partner, we continue to see blue skies ahead."

CONTACT: Air L.A.

Wayne Schoenfeld, 310/215-8248
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Publication:Business Wire
Date:Feb 10, 1995
Words:351
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