Junex Inc.
TSX VENTURE : JNX

Junex Inc.

May 27, 2011 11:34 ET

Junex Inc. Intends to Make Normal Course Issuer Bid

QUEBEC CITY, QUEBEC--(Marketwire - May 27, 2011) - 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 June 1, 2011 and ending May 31, 2012, representing 1.63% of Junex's 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 May 25, 2011, there were 61,242,071 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.

New legislation from the government of Québec

On May 12, 2011, the government of Québec deposited Bill 18 which, if it is passed by the National Assembly, will, in certain circumstances, exempt companies holding licences to explore for petroleum and natural gas from their obligation to perform the required exploration work on these permits for a period of up to two years following the coming into force of the proposed act. Bill 18 also provides that some licences delivered by the Minister of Natural Resources and Wildlife in the St. Lawrence River and on the islands will be revoked without compensation to the holder of such licences. Junex is presently evaluating the impact of Bill 18 on its assets since the company holds certain licences in areas affected by this bill.

About Junex

Junex is a junior oil and gas exploration company that holds exploration rights on more than 6 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. As of December 31, 2010, Junex has a working capital of more than 17 million dollars. In parallel to its exploration efforts, 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 8 to 11 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.

Contact Information

  • Junex Inc.
    Mr. Jean-Yves Lavoie
    President
    418-654-9661

    Junex Inc.
    Mr. Dave Pepin
    Vice President - Corporate Affairs
    418-654-9661