AIMCo announces investment in Journey Energy Inc.

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AIMCo announces investment in Journey Energy Inc.

Alberta Investment Management Corporation (AIMCo) has announced that it has successfully entered into a strategic financing relationship with Journey Energy Inc.

Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada. Journey's strategy is to provide investors with growth by focusing on drilling its existing core lands, implementing water flood projects, executing on accretive acquisitions and growing its production base. 

Based upon the terms of the financing relationship, Journey has completed a private placement of an aggregate of 30,000 Units to AIMCo at a price of CAD1,000 per Unit for aggregate gross proceeds of CAD30 million (US$23 million). 

Each Unit is comprised of:

  • One promissory note with a par value of $1,000 per Note and bearing interest at 7.65% per annum, which is payable semi-annually
  • 165 common share purchase warrants. 

The Notes mature on October 31, 2020 and all or a portion of the principal amount outstanding thereunder can be repaid without penalty after two years. 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 CAD2.75 until October 7, 2018, which reflects a 40% premium to the 10-day weighted average trading price of the common shares of the company prior to closing of the private placement.

Kevin Uebelein, AIMCo's Chief Executive Officer, said:

"On behalf of our clients, AIMCo is pleased to be making another investment in Alberta through this important 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."

Alex G. Verge, President and CEO of Journey, said:

"AIMCo is a highly-knowledgeable and skilled institutional investor, dedicated to making long-term tactical investments. 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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