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MISSISSAUGA, ON: Canadian express operator Cargojet has agreed to sell up to 14.9 percent of the company to Amazon in exchange for  revenue of C$600 million over a period of 7.5 years.

Cargojet and AmazonAmazon uses Cargojet’s overnight air network and charter aircraft services to move packages between its facilities or last mile carrier locations before final delivery to customers.

"Cargojet has been a key player in our Canadian middle mile operations for several years," commented Adam Baker, vice president Global Transportation, Amazon. "The commercial relationship the Cargojet team continues to build with Amazon has now allowed us to further strengthen and align our long-term strategic commercial interests," added Cargojet CEO Ajay Virmani.

The airline said it plans to add more non-stop flights allowing later departures and earlier arrivals to the 15 major cities it already serves, and will add new cities to its overnight network to reach approximately 95 percent of the Canadian population.

Under the agreement with Amazon.com NV Investment Holdings, Cargojet will issue warrants allowing the company to acquire up to 9.9 percent of the airline at an exercise price of C$91.78 per share vesting over six and a half years assuming new business volume worth C$400 million. Warrants for an additional five percent based on C$200 million in new revenue will be issued after the first tranche is fully vested, said the company.

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