Just Energy Announces Update for Closing of Plan of Arrangement

Rhea-AI Summary

Just Energy Group Inc. (TSX:JE; NYSE:JE) has received approval from the U.S. Federal Energy Regulatory Commission for its Recapitalization Transaction. This marks a significant step in the company's restructuring efforts aimed at reducing its debt and interest expenses. The transaction is expected to close around September 28, 2020, providing Just Energy a pathway to enhance its financial stability. With operations spanning Canada and the U.S., Just Energy focuses on electricity and natural gas supply, as well as energy-efficient solutions.

Positive

• Approval from FERC for Recapitalization Transaction enhances financial stability.
• Expected closure of the Recapitalization Transaction on or about September 28, 2020.

Negative

• Risks associated with the Recapitalization Transaction may lead to additional uncertainty.
• Potential dilution of existing shares due to the issuance of new equity.

TORONTO, Sept. 23, 2020 (GLOBE NEWSWIRE) -- Just Energy Group Inc. (“Just Energy” or the “Company”) (TSX:JE; NYSE:JE), a retail energy provider specializing in electricity and natural gas commodities and bringing energy efficient solutions and renewable energy options to customers, today announced that it received the approval from the United States’ Federal Energy Regulatory Commission (the “FERC”) of the Company’s previously announced plan of arrangement (the “Recapitalization Transaction”). The Company has obtained all necessary approvals and may now proceed with the closure of the Recapitalization Transaction. The Company expects to close the Recapitalization Transaction on or about September 28, 2020.

About Just Energy Group Inc.

Just Energy is a consumer company focused on essential needs, including electricity and natural gas health and well-being, such as water quality and filtration devices; and utility conservation, bringing energy efficient solutions and renewable energy options to consumers. Currently operating in the United States and Canada, Just Energy serves residential and commercial customers. Just Energy is the parent company of Amigo Energy, EdgePower Inc., Filter Group Inc., Hudson Energy, Interactive Energy Group, Tara Energy, and TerraPass. Visit https://investors.justenergy.com/ to learn more. Also, find us on Facebook and follow us on Twitter.

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These statements are based on current expectations that involve several risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, risks with respect to raising new equity capital and the exchange of debt; the proposed recapitalization transaction resulting in a financially stronger Company; reducing the Company’s existing debt and interest expense (including the amounts thereof); proceedings under the CBCA; implementing a Plan of Arrangement; issuing new equity; the allocation of any new equity; addressing certain obligations as part of a proposed recapitalization transaction; risks associated with the proposed recapitalization transaction, including the inability to complete a proposed recapitalization transaction or complete a proposed recapitalization transaction in a timely or efficient manner; the inability to reduce the Company’s debt and/or interest payments, proceedings under the CBCA; issuing and allocating new equity including the dilution of the Company’s outstanding common shares; the value of existing equity following the completion of a recapitalization; the impact of the evolving COVID-19 pandemic on the Company’s business, operations and sales; reliance on suppliers; uncertainties relating to the ultimate spread, severity and duration of COVID-19 and related adverse effects on the economies and financial markets of countries in which the Company operates; the ability of the Company to successfully implement its business continuity plans with respect to the COVID-19 pandemic; the Company’s ability to access sufficient capital to provide liquidity to manage its cash flow requirements; general economic, business and market conditions; the ability of management to execute its business plan; levels of customer natural gas and electricity consumption; extreme weather conditions; rates of customer additions and renewals; customer credit risk; rates of customer attrition; fluctuations in natural gas and electricity prices; interest and exchange rates; actions taken by governmental authorities including energy marketing regulation; increases in taxes and changes in government regulations and incentive programs; changes in regulatory regimes; results of litigation and decisions by regulatory authorities; competition; the performance of acquired companies and dependence on certain suppliers. Additional information on these and other factors that could affect Just Energy’s operations, financial results or dividend levels are included in Just Energy’s annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com on the U.S. Securities and Exchange Commission’s website at www.sec.gov or through Just Energy’s website at www.justenergygroup.com.

Neither the Toronto Stock Exchange nor the New York Stock Exchange has approved nor disapproved of the information contained herein.

FOR FURTHER INFORMATION PLEASE CONTACT:

Jim Brown
Chief Financial Officer
Just Energy
713-544-8191
jbrown@justenergy.com

or

Investors
Michael Cummings
Alpha IR
Phone: (617) 982-0475
JE@alpha-ir.com

Media
Boyd Erman
Longview Communications
Phone: 416-523-5885
berman@longviewcomms.ca

Source: Just Energy Group Inc.

FAQ

What is the significance of the FERC approval for Just Energy (JE)?

The FERC approval for Just Energy's Recapitalization Transaction is crucial as it allows the company to proceed with restructuring efforts aimed at reducing debt and enhancing financial stability.

When will Just Energy's Recapitalization Transaction close?

Just Energy expects to close the Recapitalization Transaction on or about September 28, 2020.

What risks are associated with Just Energy's Recapitalization Transaction?

Risks include potential difficulties in completing the transaction in a timely manner and the dilution of existing shares due to the issuance of new equity.

How does the Recapitalization Transaction affect Just Energy's debt?

The Recapitalization Transaction aims to reduce Just Energy's existing debt and interest expenses, which is expected to improve the company's financial position.