QUÉBEC CITY, QUÉBEC--(Marketwire - Sept. 4, 2012) - Junex Inc. (TSX VENTURE:JNX) announces that it intends to make a normal course issuer bid. Under the normal course issuer bid, Junex will be entitled to repurchase for cancellation up to 1,000,000 common shares over a twelve-month period commencing September 4 2012 and ending August 31, 2013, representing 1.49 % of Junex's currently issued and outstanding common shares. The purchases by Junex will be effected through the facilities of the TSX Venture Exchange and will be made at the market price of the common shares at the time of the purchase. As at August 30, 2012, there were 67,184,928 Junex common shares issued and outstanding.
The Board of Directors of Junex considers that the underlying value of Junex may not be reflected in the market price of its common shares at certain times during the term of the normal course issuer bid. The Board has therefore concluded that the repurchase of shares at certain market prices may constitute an appropriate use of company's financial resources and be beneficial to Junex and its shareholders.
Any purchases made pursuant to the normal course issuer bid will be made in accordance with the requirements of the TSX Venture Exchange. Junex will make no purchases of common shares other than open market purchases during the period of the normal course issuer bid. To the knowledge of Junex, no director or officer of Junex intends to sell Junex common shares while the normal course issuer bid is in effect.
No director, officer or any of their associates, or any person acting jointly or in concert with Junex, or any person holding 10% or more of any class of shares of Junex whatsoever will receive any benefit other than that conferred to all shareholders during the normal course issuer bid.
CIBC World Markets Inc., 161 Bay Street, 5th Floor, Toronto, Ontario, M5J 2S8, will be acting as member and broker during the normal course issuer bid.
In addition, Junex has entered into an automatic share purchase agreement with CIBC World Markets Inc. in connection with the normal course issuer bid. Under the agreement, CIBC may acquire, at its discretion, common shares during certain pre-determined quarterly black-out periods, on Junex's behalf, subject to certain parameters as to price and number of shares.
The normal course issuer bid has been approved by the TSX Venture Exchange.
Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 million acres of land located in the Appalachian basin in the Province of Quebec. The company is in the heart of the Utica Shale gas discovery located in the St. Lawrence Lowlands and holds a significant land-package on the Anticosti Island where an independent report has provided their Best Estimate of the undiscovered shale oil initially-in-place ("OIIP") volume for the Macasty Shale on all five of Junex's permits on Anticosti Island at 12.2 billion barrels. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations.
Forward-Looking Statements and Disclaimer
Certain statements in this press release may be forward-looking. Forward-looking statements are based on the best estimates available to Junex at the time and involve known and unknown risks, uncertainties and other factors that may cause Junex's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Junex's business and activities appears under the heading "Risks and Uncertainties" on pages 11 to 14 of Junex's 2010 annual management's discussion and analysis, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Junex will derive therefrom. In particular, no assurance can be given as to the future financial performance of Junex. Junex disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event. The reader is warned against undue reliance on these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.