Junex inc.

Press releases

3 July 2018

Junex Inc. Receives Unsolicited Offer

JULY 03, 2018 - QUÉBEC CITY (GLOBE NEWSWIRE) -- Junex Inc. ("Junex") (TSXV:JNX) announces that it has received an unsolicited offer (the "Utica Offer") from Utica Resources Inc. ("Utica"), an affiliate of Lansdowne Partners Austria GmbH, to acquire all of the outstanding common shares of Junex (the "Junex Shares"). Under the Utica Offer, each shareholder of Junex would have the option to receive, for each Junex Share, either (a) $0.42 in cash or (b) $0.40 in cash plus a contingent value right (the "CVR") entitling the holder to receive a pro rata share, paid yearly in cash, of a royalty of 1.0% of revenue attributable to Junex's current working interest share of the gross monthly production of all petroleum substances, after certain deductions, from Junex's Galt project; the CVR would be redeemable by Utica at any time for an additional cash payment of $0.10 per Junex Share (the "Proposed Transaction").

The board of directors of Junex (the "Board") is, together with its financial advisors and legal counsel, reviewing the Utica Offer in order to determine whether it constitutes a "Superior Proposal" as defined in the arrangement agreement dated June 8, 2018 (the "Arrangement Agreement") between Junex and Cuda Energy Inc. ("Cuda"), and has provided notice of such review to Cuda.

Until such time as the Board makes its determination, Junex will continue with the process set forth in the Arrangement Agreement, including holding a special meeting of Junex's shareholders for the purpose of considering and voting on the Arrangement Agreement.

In accordance with the Arrangement Agreement, if the Board determines that the Utica Offer is a Superior Proposal and makes a determination to accept, approve, recommend or enter into an agreement in respect of the Utica Offer, Junex will immediately notify Cuda, following which Cuda shall have a period of seven business days (the "Response Period") during which it can offer to amend the terms of the Arrangement Agreement. Cuda is under no obligation to make such an offer but, if Cuda offers to amend the Arrangement Agreement such that the Board determines that the Utica Offer would cease to be a Superior Proposal, Junex will enter into an amendment to the Arrangement Agreement and implement the amended agreement. If, within the Response Period, Cuda does not offer to amend the Arrangement Agreement, or if the Utica Offer continues to be a Superior Proposal following a proposed amendment to the Arrangement Agreement, Junex may accept the Utica Offer, terminate the Arrangement Agreement and pay to Cuda the agreed termination fee of $2,000,000, all in accordance with the terms of the Arrangement Agreement.

Junex cautions that there can be no assurance that the Utica Offer will lead to the termination of the Arrangement Agreement and the execution of an arrangement agreement with Utica, or that the Proposed Transaction will be approved by Junex's shareholders or consummated.

For more information on the Arrangement Agreement, please see Junex's press release of June 11, 2018.

About Junex Inc.

Junex is a Québec SME that seeks to be a catalyst in accessing Québec's oil and gas resources, while ensuring that their development becomes an important means of creating collective wealth for Québeckers. Junex's operations are conducted in a responsible manner, in strictest compliance with the rules, laws and regulations that govern oil and gas activities. To that end, every day it takes all measures to minimize the environmental impact of its activities.

Contact Information

Junex Inc.
Jean-Yves Lavoie
President & Chief Executive Officer
418-654-9661

Source: http://junex-recoit-une-offre-non-sollicitee

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