Just Energy Group Inc. (JE) saw high volume day on Friday. Trade of about 164 million shares occurred on the day against an average volume of 5.25 million. With previous closing price of $0.31 the stock commenced trading at $0.50. It concluded the day at $0.39 getting an overall gain of 26.22% on Friday.
After close of the business on Thursday, the company announced progress in its recapitalization plan. Securityholders of the company in special meetings on Thursday have given a go ahead to the plan.
Just Energy is on a broader reinforcing strategy and lessening risks attached to the business operations. The company is eyeing on the goal to be in leading position in the industry. The Recapitalization strategy will result in several financial benefits for the company. It will improve financial position and will provide the company with additional $100 million in equity. The plan will come reducing the net debts and preferred shares also. This will reduce total burden of about $520 million of the company.
The support by all stakeholders highlights that we are heading in a right direction. The direction to achieve financial stability and more liquidity, said President and Chief Executive Officer of Just Energy, Scott Gahn. Business growth, advanced customer services and enhanced operations will now be the main point of focus for us.
In the meetings held, about 99.35% of the holders of senior unsecured debt voted in favor of Recapitalization. Percentage of convertible debutureholders favoring the plan was 87.66%. Common shareholders in agreement with the strategy were 94.92%. This clearly indicates that nearly 93.97% of the stake holders on average were in favor of the company’s plan.
Board of Directors will also be reconstituted as approved by all the stakeholders in the meeting. The reconstitution was also the part of Recapitalization plan. The new board so created will have seven directors. Five new directors will be appointed to the board while two will be from existing board. The reconstituted board will take charge once the Recapitalization plan would be implemented. The Recapitalization plan is expected to be executed in a month subject to legal and regulatory approvals.
This might take the stock price higher for a while. But actual and confirm position of the stock would still be reliant upon company performance. And that would be after the implementation of approved strategy.