Journey Energy Inc. Files Final Prospectus and Announces Pricing of Initial Public Offering
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
CALGARY, June 13, 2014 /CNW/ - Journey Energy Inc. ("Journey" or the "Company") is pleased to announce that it has filed a final long form prospectus (the "Prospectus") dated June 12, 2014, with the securities commissions of each of the provinces of Canada in connection with an initial public offering and secondary offering of its common shares (collectively, the "Offering"). The Prospectus qualifies the distribution of 16,500,000 common shares, of which 14,000,000 common shares will be issued and sold by the Company and 2,500,000 will be sold by Infra-PSP Partners Inc. (the "Selling Shareholder"), at a price of $12.00 per common share for aggregate gross proceeds of $198,000,000.
The Offering is being made through a syndicate of underwriters co-led by BMO Capital Markets and CIBC and including Peters & Co. Limited, Cormark Securities Inc., FirstEnergy Capital Corp., RBC Capital Markets, TD Securities Inc. and AltaCorp Capital Inc. (the "Underwriters").
The Company and the Selling Shareholder have also granted the Underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 2,475,000 common shares, in aggregate, also at a price of $12.00 per common share.
The Offering is expected to close on or about June 19, 2014. The Company has received conditional listing approval for the listing of its common shares on the Toronto Stock Exchange (the "TSX") under the symbol "JOY" subject to the Company fulfilling all of the listing requirements of the TSX.
The Prospectus notes that an investment in the common shares of the Company is speculative and involves a high degree of risk. The Company's business is subject to the risks normally encountered in the oil and natural gas industry. An investment in the common shares of the Company is suitable only for those investors who are willing to risk a loss of some or all of their investment. For more information, potential investors should read the Prospectus, including the "Risk Factors." A copy of the Prospectus is available on the SEDAR website at www.sedar.com.
This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia) or any other jurisdiction outside Canada. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities offered pursuant to the Prospectus have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or the securities laws of any state of the United States and may not be offered or sold within the United States other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offer of securities in the United States.
About the Company
Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada. Through the Offering, Journey is transitioning into a growth plus sustainable yield company focused on drilling on its existing core lands, implementing water flood projects, executing on accretive acquisitions and growing its production base. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods.
Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, which involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Journey, including, without limitation, those listed under "Risk Factors" and "Forward Looking Statements" in the Prospectus. Forward-looking information may relate to our future outlook and anticipated events or results and may include statements regarding the business strategy and plans and objectives. Particularly, forward-looking information in this press release includes, but is not limited to, information concerning the proposed Offering, including the expected closing date thereof, the completion and receipt of necessary approvals and Journey's objectives and intended drilling program. Journey cautions investors in Journey's securities about important factors that could cause Journey's actual results to differ materially from those projected in any forward-looking statements included in this press release. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. No assurance can be given that the expectations set out in the Prospectus or herein will prove to be correct and accordingly, you should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as required by applicable securities law.
No securities regulatory authority has either approved or disapproved of the contents of this press release.
SOURCE Journey Energy Inc.For further information:
Alex G. Verge
President and Chief Executive Officer
Chief Financial Officer