Gulfstream International Group enters into agreement for new debt financing

Gulfstream International Group has entered into an agreement to sell to an institutional investor $5.10 million in face amount of secured original issue discount debentures (the “Senior Debentures”). In addition, Gulfstream will issue to the Investor a warrant to purchase 578,870 shares of Gulfstream common stock, exercisable at nominal value. The Investor has the right to require Gulfstream to repurchase the warrants if they are not exercised within three years.