Canadian oil and gas company Journey Energy Inc has completed an initial public offering and a secondary offering of a combined 16.5 million common shares at a price of $12 per share. Together, the offerings raised gross proceeds of $198 million and may go on to raise a total of $228 million. The secondary deal was done by Infra-PSP Partners, a subsidiary of PSP Investments, which has been Journey’s principal shareholder. Reuters reported that PSP would retain an investment stake of about 30 percent in the Calgary-based company following the close of the offer. Journey’s shares are now listed on the Toronto Stock Exchange under the symbol “JOY”.
PRESS RELEASE
Journey Energy Inc. Completes $198 Million Initial Public Offering and Secondary Offering
CALGARY, June 19, 2014 /CNW/ – Journey Energy Inc. (“Journey” or the “Company”) is pleased to announce that it has completed an initial public offering of 14,000,000 of its common shares (the “Common Shares”) and a secondary offering by Infra-PSP Partners Inc. (the “Selling Shareholder”) of 2,500,000 Common Shares (collectively, the “Offering”) at a price of $12.00 per Common Share for aggregate gross proceeds of $198,000,000.
The Common Shares are listed on the Toronto Stock Exchange under the symbol “JOY”.
The Offering was 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 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. If the over-allotment option is exercised in full, the total gross proceeds of the Offering will be $227,700,000.
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 Common Shares 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 the Common Shares 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.
Advisories
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 final long form prospectus of Journey dated June 12, 2014 (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 over-allotment option 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.
CONTACT: Investors: Alex G. Verge
President and Chief Executive Officer
403-294-1635
alex.verge@journeyenergy.ca Gerry Gilewicz
Chief Financial Officer
403-303-3238
gerry.gilewicz@journeyenergy.ca
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