AIMCo.Pushes Through Journey Energy Inc. Investment
Oct 08, 2016 06:00 AM EDT
Oct 08, 2016 06:00 AM EDT
One of Canada's largest and most diversified institutional investment managers with more than $90 billion of assets (which was established on January 1, 2008 ) was happy to announce that it victoriously entered to a strategic financing partnership with Journey Energy Inc.
The Canadian company, Journey, operates as an exploration and production company which focused on conventional, oil-weighted operations in Western Canada. Its strategic approach is to provide investors with growth through their focus of drilling core lands that exist, implementing water flood projects, executing on accretive acquisitions as well as growing its production base.
Their financing association was governed with terms. Based upon the terms, a private placement of an aggregate of 30,000 Units has been completed by Journey at a price of $1, 000 per Unit for aggregate gross proceeds of $30M to AIMCo. Every Unit is consists of one promissory note with par value of $1,000. Per note bears interest at 7.65% per annum, that is payable twice a year and common share purchase warrants.
The maturity of the Notes is on October 31, 2020 which is four years from now. All or a portion of the principal amount outstanding thereunder can be repaid after two years without penalty.
Journey Energy Inc. released 4.9 million Warrants in connection with the private placement. Each warrant grants the holder to purchase one common share of Journey for $2.75 which last this October 7, 2018. This reflects a 40% premium to the 10-day weighted average trading price of the common share
Journey issued 4.95 million Warrants in connection with the private placement, with each Warrant entitling the holder to purchase one common share of Journey for $2.75 until October 7, 2018, which reflects a 40% premium to the 10-day weighted average trading price of the common shares of the prior to the close of the private placement.
Kevin Uebelein, AimCo's Chief Executive officer has spoken in behalf of their clients, he is pleased to be making another investment in Alberta through the significant commitment to Journey Energy.
"We believe that the combination of Journey's highly-experienced executive team and diversified portfolio, position the company well for future growth." said the executive.
Alex G. Verge, President and CEO of Journey seconded by saying "We are excited to be entering into this strategic partnership with AIMCo, and about the advancement opportunities this investment will bring. We remain resolute on finding ways to grow the business and create value."
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