Business
Journey Energy Inc. Announces the Closing of Its Repurchase of Common Shares
Journey Energy Inc. Announces the Closing of Its Repurchase of Common Shares Canad...
About this update from Journey Energy, Inc.
[{"type":"text","content":"\n\n\n\nJourney Energy Inc. Announces the Closing of Its Repurchase of Common Shares\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Feb. 2, 2018\n\n\n\nCALGARY, Feb. 2, 2018 /CNW/ - Journey Energy Inc. (JOY – TSX) (\"Journey\" or the \"Company\") announces that it has today completed the acquisition of 12.7 million of its outstanding shares from its largest shareholder.\n\nShare Repurchase\n\nJourney has today closed the previously announced acquisition of 12.7 million common shares from MIE Maple Investments Limited (\"MIE\") at a price of $1.68 per share (the \"Share Repurchase\").  The shares repurchased have been returned to treasury for cancellation.  After the Share Repurchase, MIE will continue to hold 3.7 million of Journey's approximately 38.5 million shares outstanding.\n\nFinancing\n\nConcurrent with the repurchase of shares, Journey also closed its previously announced, $22 million promissory note financing (the \"Financing\") with Alberta Investment Management Company (\"AIMCo\") on behalf of certain of its clients.  The promissory notes mature on September 30, 2022 and all or a portion of the principal amount outstanding thereunder can be repaid without penalty after three years. AIMCo currently holds 4,950,000 common shares of Journey, representing approximately 12.8% of the post-Share Repurchase, issued and outstanding common shares, on a non-diluted basis. As part of the Financing, AIMCo also received 2,310,000 warrants with an exercise price of $2.51. The warrants expire on June 1, 2020.\n\nRelated Matters\n\nThe Share Repurchase is not considered an issuer bid under National Instrument 62-104 (\"NI 62-104\") as the Company is repurchasing shares from a shareholder that is not resident in a local jurisdiction of Canada.  Additionally, neither the Share Repurchase nor the Financing are \"related party transactions\" under Multilateral Instrument 61-101 (\"MI 61-101\").  As such, neither a formal valuation nor a shareholder meeting was required under MI 61-101.  Although NI 62-104...