PAL AEROSPACE acquired by EXCHANGE INCOME CORPORATION

Exchange Income Corporation’s acquisition of Provincial Aerospace Ltd. marks a strategic entry into the specialized sovereign aerospace defense sector, acquiring an international maritime surveillance platform to complement its stable domestic regional aviation portfolio. The transaction represents a planned exit for the founding shareholders, capitalizing on the asset's mature multi-continental footprint while transferring ownership to an institutional sponsor equipped with the balance sheet capacity to fund large-scale aircraft acquisition and sensor integration programs. The consideration is funded through the corporate unutilized revolving credit facility alongside a minor equity rollover issued directly to the vendors, leaving the buyer's balance sheet with meaningful post-closing liquidity to advance future organic fleet expansions. Chief Executive Officer Brian Chafe and the incumbent management team will retain full operational command, safeguarding specialized engineering talent and ensuring undisturbed execution of complex defense procurement agreements with international government agencies. Immediate integration priorities center on establishing an employee benefit retention trust to secure key technical personnel, followed by the integration of structural aviation supply chain synergies with existing regional airline units. The forward growth agenda focuses on scaling the high-margin outsourced maritime surveillance model into international jurisdictions where sovereign clients increasingly opt for asset-light, contractor-operated border and economic zone monitoring solutions.