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Baltia Air Lines Inc (OTCMKTS:BLTA) Set To Fly Higher

Baltia Air Lines Inc (OTCMKTS:BLTA) Set To Fly Higher
Written by
Jarrod Wesson
Published on
November 18, 2017
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Today, we are going to talk again about Baltia Air Lines Inc (OTCMKTS:BLTA), the airline company.Our readers will remember well our last piece on this name called "Baltia Air Lines Inc. (OTCMKTS:BLTA) Getting Ready For Takeoff". We said about the company that the preparations to receive the FAA Air Carrier Certification were being made. Additionally, we noted that some corporate changes including restructuring and reduction of the total outstanding shares had been announced. We said that Baltia was the one that needed to be on our radar.We believe that we were not wrong in saying so.The article was published in April and the readers who followed our advice could see how the share price increased in May.Have a look at the spike and note the large amount of shares that changed hands some days; more than 40 million. YTD chart for BLTAIn this article, we will provide information that will help understand what happened in May.Additionally, we will explain why the share price was pushed down recently. We will also mention the reasons for the increase in volume that we have seen during these weeks: 2 months chart for BLTAFor those who don't know about the company. BLTA is a New York company headquartered at JFK International Airport in New York with a base of operations at Willow Run Airport outside of Detroit, Michigan. The following is the business objective of the BLTA as shown on OTC Markets:

"Baltia's goal is to become the leading U.S. airline in the Trans-Atlantic market between the major U.S. cities and capital cities of Europe. Baltia will provide high quality passenger service, and reliable cargo and mail transportation." Source

Recent DevelopmentsLet's see what exited the market after our last article.On May 8, 2017, the company released that Daniel J. Buckley was going to be the next Chief Financial Officer. He is also the President and Chief Executive Officer of the company. We appreciate his business profile and believe that his expertise will help BLTA in the next strategic steps in obtaining Air Carrier Certification. Read the following:

  • Is 51 years of age and has over 20 years of experience in the financial services industry
  • Senior institutional broker at Tradition Financial Services and worked on Cantor Fitzgerald and Tullet Prebon
  • Financial analyst for General Electric Investments in Stamford, Connecticut
  • B.S. in business and finance from the University of Rhode Island
  • MBA at SDA Bocconi in Milan, Italy

On May 8, 2017, Anthony D. Koulouris resigned from his position as Chief Financial Officer of Baltia Air Lines, Inc. The Board of Directors (the “Board”) of the company appointed Daniel J. Buckley as Chief Financial Officer. Mr. Koulouris will retain his position as President and Chief Executive Officer of the Company.On May 9, 2017, the company released an agreement with Kalitta Air, LLC, under which BLTA would lease a Boeing 767-400ER. We believe that the most significant in the agreement is "that no later than five business days prior to the delivery date the company would pay to Kalitta a lump sum basic rent payment." Additionally, the company would be responsible for the maintenance fees, structural checks, accumulated flight hours, and other costs.We believe that the news was very significant, as it was highlighted that the lease will be used to obtain its Air Carrier Certification with the Federal Aviation Administration, which is currently in process.Additionally, it was noted that the company had entered into an agreement with GBH CPAs, PC, which was going to be the new independent public accounting firm.On May 11, 2017, the shareholders also accepted to change the name of the company from “Baltia Air Lines, Inc.” to “USGlobal Airways, Inc.” and to execute a reverse stock split of the company’s capital stock at a ratio of between one-for-25 and one-for-50.What does it mean?From now on, the Board of Directors will be able to execute these corporate changes when necessary. These two events could make the share price move quite a bit. Thus, be ready to assess the news.Why did the share price decline in June?On June 19, 2017, the company realized that it will have to restate its financial statements for the fiscal year ended December 31, 2015. According to the filing, an engine lease agreement with Logistic Air, Inc., dated January 15, 2010, was not taken into account. The news created pressure on the stock price.We believe that a new opportunity may arise from the new restated financials. If the financial statements released to the market are better than expected, the share price could rebound.More good news came later.On June 27, 2017, the company released that a new non-binding letter of intent with AerLine Holdings LLC was signed on June 15, 2017. According to the agreement, Songbird Airways, Inc. may be acquired by the company for the purchase price of $6,200,000. A good-faith deposit of $1,000,000 with a third party escrow agent was made.This news is very significant, as Songbird Airways, Inc. will need to have a valid and current air carrier certificate issued by the Federal Aviation Administration to close the deal. Finally, the company could receive this certificate that will permit the company fly. To sum up, if the deal is closed, the shareholders may see the share price going very high.On August 4, 2017, it was released that Daniel J. Buckley would be the new CFO. We believe that the news is quite good, as he is an experienced executive. He has 30 years of expertise in the financial services industry. Additionally, Mr. Conte has served as the Chief Financial Officer of Innovation Luggage and as controller for Forman Industries.On August 30, 2017, AerLine Holdings LLC signed a stock purchase agreement with AerLine Holdings Inc. regarding the acquisition of Songbird Airways, Inc. The conditions were similar to those that we noted earlier. We believe that the market did not read the contract as we did. In our opinion, the share price should have increased.Nothing else was released about this agreement after September 2017. Thus, maybe some market participants decided to sell their shares. It may have pushed down the share price. .ConclusionCurrently trading with a market cap of $15 million, BLTA is an interesting story among small caps. We believe that there are quite a few catalysts coming up for the stock price. Any one of them could push the share price higher, thus we encourage readers to be alert on new announcements.Be sure to check out our coverage on BLTA!We will be updating our subscribers as soon as we know more. For the latest updates on BLTA, sign up below!Image courtesy of Bernd Thaller via FlickrDisclosure: We have no position in BLTA and have not been compensated for this article.

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