Just Energy Exchange Corp.

Just Energy Exchange Corp.

January 25, 2010 08:24 ET

Just Energy Exchange Corp. Finalizes Amount of Special Distribution

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2010) - Just Energy Exchange Corp. ("JEEC") (TSX:JEX) announced today based on a final determination of the undistributed income on hand at December 31, 2009 of Just Energy Income Fund (the "Fund") that the amount of the special dividend for Just Energy Exchange Corp. will remain at $0.1333 per share which is the amount declared and estimated in December 2009.

The $0.1333 special dividend will be payable in cash on January 31, 2010 to shareholders of record December 31, 2009.

By making all of the Fund's taxable income that has not yet been distributed payable to its unitholders and shareholders of JEEC, the special dividend and distribution ensure, that as required by the Fund's Amended and Restated Declaration of Trust, the Fund will not be liable to pay income taxes in respect of its taxation year ending December 31, 2009. This special dividend has been necessitated primarily as a result of the successful performance of the Fund during 2009.

Income Tax Implications

The special distribution along with the special dividend is intended to ensure that the Fund will not be liable to pay income tax under Part I of the Income Tax Act for 2009. In general, taxable Canadian residents who hold shares will be required to include the special distribution in income for their 2009 taxation year.

Non-resident holders of the shares will be subject to applicable Canadian withholding tax on the $0.1333 special dividend.

Comments on the tax implications of the special dividend are provided as general information only. They are not intended to be legal or tax advice to any particular shareholder. All shareholders should consult legal, business and tax advisors about the tax implications of the special dividend.

Just Energy Exchange Corp.

On July 1, 2009, Just Energy Exchange Corp., a wholly owned subsidiary of Just Energy, acquired all of the issued and outstanding common shares ("Universal Shares") of Universal Energy Group Ltd. ("Universal") pursuant to an arrangement (the "Arrangement") under section 192 of the Canada Business Corporations Act and subsequently amalgamated with Universal to form the Corporation. Under the Arrangement, Universal shareholders received 0.58 of an Exchangeable Share for each Universal Share held. Each Exchangeable Share is exchangeable for a Trust Unit of Just Energy on a one-for-one basis at any time at the option of the holder.

Just Energy's business involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price and price-protected contracts through its subsidiaries. By fixing the price of natural gas or electricity under its fixed-price or price-protected program contracts for a period of up to five years, Just Energy's customers offset their exposure to changes in the price of these essential commodities. Just Energy, which commenced business in 1997, derives its margin or gross profit from the difference between the fixed price at which it is able to sell the commodities to its customers and the fixed price at which it purchases the associated volumes from its suppliers.

Just Energy also offers "green' products through its Just Green energy products. The electricity Just Green product offers the customer the option of having all or a portion of his or her electricity sourced from renewable green sources such as wind, run of the river hydro or biomass. The gas Just Green product offers carbon offset credits which will allow the customer to reduce or eliminate the carbon footprint for their home or business. Management believes that these products will not only add to profits, but also increase sales receptivity and improve renewal rates.

In addition, through National Home Services, Just Energy sells and rents high efficiency and tankless waterheaters and through Terra Grain Fuels, Just Energy produces and sells wheat-based ethanol.

Forward-Looking Statements

The Corporation's press releases may contain forward-looking statements including statements pertaining to dividend payments, customer revenues and margins, customer additions and renewals, customer attrition, customer consumption levels, distributable cash and treatment under governmental regulatory regimes. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, levels of customer natural gas and electricity consumption, rates of customer additions and renewals, rates of customer attrition, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition and dependence on certain suppliers. Additional information on these and other factors that could affect the Corporation's operations, financial results or dividend levels are included in Just Energy's annual information form and other reports of Just Energy and the Corporation on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com or through Just Energy's website at www.je-un.ca

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this release.

Contact Information

  • Just Energy Exchange Corp.
    Ms. Rebecca MacDonald
    Executive Chair
    (416) 367-2872
    Just Energy Exchange Corp.
    Ken Hartwick C.A.
    President and Chief Executive Officer
    (905) 795-3557
    Just Energy Exchange Corp.
    Beth Summers C.A.
    Chief Financial Officer
    (905) 795-4206