- Long-suffering gas and electricity retailer Just Energy (JE) has received court approval to proceed with a C$52 million recapitalisation plan
- The funds were raised through an equity subscription included in the plan, with $42 million coming from the company’s existing backstop parties
- The recapitalisation is part of ann ongoing strategic plan to strengthen and de-risk its operations, following a difficult few years of trading
- Year-to-date, the company’s market share has fallen more than 80 per cent, prompting strategic action
- Just Energy (JE) is up 6.67 per cent and is trading at 40 cents per share
Long-suffering gas and electricity provider Just Energy (JE) has received court approval to proceed with a C$52 million recapitalisation plan.
The funds were raised through an equity subscription included in the recapitalisation, with $42 million coming from the company’s existing backstop parties. The recapitalisation is part of the company’s ongoing strategic plan to strengthen and de-risk its operations, following a difficult few years of trading.
Just Energy shares have been struggling over the past few years, a trend which was further exacerbated by the onset of the COVID-19 pandemic. Year-to-date, the company’s market share has fallen more than 80 per cent, prompting the strategic action.
Once it successfully repositions itself, the company hopes to begin a period of new growth as an independent industry leader.
Scott Gahn, Just Energy’s President and CEO, appears pleased with the court approval.
“The implementation of our recapitalization plan is quickly moving ahead following today’s ruling.
“With our court approvals now received, we are focused on running our business, maintaining our improved financial position and ensuring Just Energy’s future success,” he said.
Alongside the recapitalisation plan, Just Energy has begun consolidating its shares on a 33 to one basis, which is expected to finalise on September 17. In further market manoeuvres, Just Energy previously listed preferred shares have been delisted and consolidated into its ordinary float.
The company has enacted a similar plan with its convertible unsecured senior subordinated debentures, which were initially due on in March 2023. Holders will receive 35.920689 new common shares for every $1,000 principal amount in debentures.
Just Energy (JE) is up 6.67 per cent and is trading at 40 cents per share at 12:36pm EDT.