CALGARY, March 3, 2017 /CNW/ - Journey Energy Inc. (JOY – TSX) ("Journey" or the "Company") announces that its strategic financing partner, Alberta Investment Management Corporation ("AIMCo"), has exercised the warrants they were issued in the October 2016 private placement.
Journey previously issued 4.95 million share purchase warrants (the "Warrant(s)") in connection with the term debt private placement which closed on October 6, 2016. Each Warrant entitled AIMCo to purchase one common share of Journey at a price per share of $2.75 until October 7, 2018. AIMCo has today exercised all of their 4.95 million Warrants.
Alex Verge, President of Journey says, "We are extremely happy that AIMCo has chosen to exercise their warrants prior to their scheduled expiry. We view this as a strong endorsement of Journey's abilities to create value through the use of this capital in a sustainable and profitable way. The confidence AIMCo is demonstrating with this investment in our team and our assets is reflective of the significant progress we made in 2016 in improving our cost structure, strengthening our balance sheet, and reshaping our asset base. This investment will enhance the liquidity of our Company, provide us with the flexibility to expand our capital program, and allow Journey to pursue potential acquisition opportunities."
The proceeds from the Warrant exercise of $13.6 million will initially be used to repay bank debt.
AIMCo is one of Canada's largest and most diversified institutional investment managers with more than $90 billion of assets under management. AIMCo was established on January 1, 2008 with a mandate to provide superior long-term investment results for its clients. AIMCo operates at arms-length from the Government of Alberta and invests globally on behalf of 31 pension, endowment and government funds in the Province of Alberta. For more information on AIMCo please visit www.AIMCo.alberta.ca.
ABOUT THE COMPANY
Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada. Journey's strategy is to provide investors with growth plus a sustainable yield by focusing on drilling 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 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 Annual Information Form filed on www.SEDAR.com on March 31, 2016. 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 use of the proceeds from the private placement, the results of the semi-annual review of Journey's syndicated bank line and the future liquidity of Journey. 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 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.
Readers are cautioned that the above list of risks and factors are not intended to be exhaustive. Additional information on these and other factors that could affect our operating and financial results are, or will be, included in reports filed with the applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
SOURCE Journey Energy Inc.