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Journey Energy Inc. (TSX:JOY) has announced that Maple Investments will acquire an aggregate of 16,355,798 common shares and restricted voting shares from Infra-PSP Partners for $33,846,602 (approximately $2.069 per share). According to the press release: [The change is] pursuant to a share purchase agreement dated September 15, 2016. On closing of the acquisition, the restricted …
Journey Energy Inc. (TSX:JOY) has announced that Maple Investments will acquire an aggregate of 16,355,798 common shares and restricted voting shares from Infra-PSP Partners for $33,846,602 (approximately $2.069 per share).
According to the press release:
[The change is] pursuant to a share purchase agreement dated September 15, 2016. On closing of the acquisition, the restricted voting shares will automatically convert, without any further action, into common shares on the basis of one common share for each restricted voting share. Closing of the acquisition is expected to occur on or before September 30, 2016. On closing of the acquisition, MIE will own approximately 37.5% of the issued and outstanding Shares of Journey. Prior to the closing of the acquisition, MIE does not hold any Shares in Journey.
The acquisition will be exempt from the formal take-over bid requirements in applicable Canadian securities laws pursuant to the “private agreement exemption” set forth in Section 4.2 of National Instrument 62-104. The exemption is available to MIE on the basis that (i) the Shares are being acquired from not more than five persons or companies in the aggregate; (ii) the bid was not made generally to holders of Shares of Journey; and (iii) the value of the consideration to be paid for the Shares, including brokerage fees and commissions, is not greater than 115 per cent of the market price of the Shares at the date of the bid as determined in accordance with applicable Canadian securities laws.
The Shares are being acquired for investment purposes by MIE. Depending on market conditions and other relevant factors, MIE may acquire additional Shares either on the open market or through private acquisitions, including acquisitions from treasury of Journey, or through selling Shares either on the open market or through private dispositions.
Journey’s management and directors are pleased to welcome MIE as a new shareholder. As Journey’s largest shareholder, the interest and future prospects of Journey will be directly aligned with MIE. MIE has expressed a long term desire to leverage on their resources to invest and assist in Journey’s future growth. At a time in our industry where capital resources are at a premium Journey views this partnership as an opportunity to take the company to the next level.