Article: "Baltia (BLTA) Getting Ready For Takeoff"
Baltia Air Lines Inc (OTCMKTS:BLTA) Getting Ready For Takeoff
By Jarrod Wesson / in Analyst Actions, Momentum & Growth, Momentum Stocks, Stocks / on Friday, 21 Apr 2017
Today, we will talk about one of the most famous airline stocks listed on the OTC markets; Baltia Air Lines Inc (OTCMKTS:BLTA). In our last piece, we noted that the airline company was still waiting for the approval of the FAA Air Carrier Certification. We mentioned that this is the major catalyst for this company. If the company finally receives the approval, you can be sure that the share price will jump.
This time, we wanted to note another relevant event: the shareholders’ meeting is scheduled to be held on May 11, 2017. We will prepare you for the meeting and assess decisions shareholders need to make. Additionally, the CEO released a letter to the shareholders. Have a look at the recent uptrend of the share price:
SPECIAL SHAREHOLDERS MEETING
Name Change
On April 14, 2017, the company communicated that shareholders will need to vote on May 11, 2017 to accept the Name Change adopted by the Board of Directors. The record date is April 20, 2017. If shareholders approve the name change, the company will be called “USGlobal Airways, Inc.”. In addition, the trading symbol will be changed as well.
In our opinion, the company can enhance shareholder value with this decision, since the CEO was changed recently and the company entered into a new stage of restructuring and reorganization. Thus, the new name will be a sign to symbolize that the company is a new and renovated business entity ready to continue its activities and shareholders will note it.
“In the second quarter of 2016, we commenced a company wide restructuring and reorganization plan under the direction of Anthony D. Koulouris, our President, to improve operating efficiencies and reduce operating costs, including making changes in our executive team. In connection with this restructuring and reorganization plan, the Board believes that it is advisable for the Company to change the Company’s name from “Baltia Air Lines, Inc.” to “USGlobal Airways, Inc.” to provide the Company with a new identity moving forward.”
Reverse Split
In addition, in the same shareholders’ meeting, shareholders will decide whether to accept a share split that has been recommended by the Board of Directors. If it is accepted, the total outstanding shares will be reduced either 25 times or 50 times depending on the final decision of the Board. We believe that shareholders will benefit from the reverse split, since the company will be able to obtain more visibility, and the stock may trade on other exchanges different from the OTC PINK exchange, wherein it is now listed. Also, there are institutional investors that cannot invest in securities priced so low, so if the reverse split is accepted, these traders will be able to invest. Thus, the liquidity of the common stock may increase and the price could also.
The Letter From the CEO
There is important news regarding the FAA Air Carrier Certification in the letter. On March 29, 2017, the COO, Sheryle Milligan, and the CEO met with members from the new FAA Certification Team. The meeting was quite relevant, since the executive obtained information about the changes taking place within the FAA:
“First, it gave us the opportunity to introduce them to our updated vision for our company and our proposed airline operations, and second, the meeting allowed the agency the opportunity to update us on the numerous changes taking place within the FAA.”
The CEO highlighted the fact that the FAA issued new “draft” guidance for Air Carrier Certifications and noted that FSDO Manager obtained authorization to forward the document to the CEO for use in developing future revisions to the manuals of the company. Additionally, the company noted its good relation with the company in charge of the lease of the Boeing 767-300ER aircraft that Baltia intends to use when the FAA Air Carrier Certification is obtained. To sum up, everything seems ready to fly once the company is authorized.
Conclusion
Baltia is preparing for the moment when it receives the FAA Air Carrier Certification. It is making changes in the organization, restructuring, corporate name and reducing the amount of shares outstanding. If the next decisions of the Board are accepted, we expect that the share price will react positively. Thus, in our opinion, it is important that traders subscribe to our newsletter to be ready to react when Baltia gets the all clear for takeoff. Finally, we noted the most relevant information highlighted in the letter from the CEO: the good relation with the lease company and the new information received from the FAA Certification Team. Overall, Baltia is one that needs to be on your radar.
Disclosure: We have no position in BLTA and have not been compensated for this article.
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