Noting Potential For "Substantial" Impact From Balancing Power Supply At Very High Clearing Prices Due To ERCOT Weather Event, Just Energy Announces Delay in Filing Financial Statements, Application For Management Cease Trade Order
February 16, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Just Energy Group Inc. announced today that it will miss its filing deadline of February 16, 2021 to file its unaudited interim condensed consolidated financial statements for the three and nine months ended December 31, 2020 (the 'Interim Financial Statements'), its management discussion and analysis on the Interim Financial Statements, and the CEO and CFO certificates in respect of the Interim Financial Statements (collectively, the 'Reporting Documents') as required by applicable Canadian securities laws.
"The extreme cold temperatures throughout the State of Texas commencing on or about February 13, 2021, continuing through the past few days and forecast to continue throughout the upcoming week, have caused increases in power demand and rolling blackouts (the 'Weather Event'). The increased demand and rolling blackouts resulting from the Weather Event has caused the Company to have to balance power supply at very high clearing prices through the Electric Reliability Council of Texas (ERCOT), the independent system operator which manages the flow of electric power to most of the State. The impact of the Weather Event may result in a positive or negative financial impact to the Company, which could be substantial. Management is currently assessing the impact of the Weather Event on the Company, and cannot finalize the Reporting Documents until its review and understanding of the Weather Event and its impact on the Company’s financial condition can be reasonably estimated. As a result of the foregoing, the Company will not be able to file the Reporting Documents on or before the deadline for such filings of February 16, 2021. In addition, due to the uncertainty, the Company is withdrawing its previously provided guidance for Base EBITDA and unlevered free cash flow for Fiscal 2021 because the Weather Event may result in a positive or negative financial impact to the Company," Just Energy said
"The Company has filed an application with the Ontario Securities Commission, its principal regulator, for a management cease trade order, in accordance with National Policy 12-203 - Management Cease Trade Orders ('NP 12-203'). If approved, this application would give the Company extra time of up to one month after February 16, 2021 to file the Reporting Documents. There can be no certainty that a management cease trade order will be granted. The applicable regulatory authorities may instead determine to issue a full cease trade order against the Company. The Company intends to file the Reporting Documents on or about February 22, 2021 following the anticipated completion of the Weather Event," Just Energy said
The Company has established a blackout on trading of the Company’s securities by directors and officers, and intends to continue the blackout until such time as the Reporting Documents have been filed.
The Company confirms that it intends to satisfy the provisions of the alternative information guidelines found in Section 9 and 10 of NP 12-203 for so long as it is delayed in filing the Reporting Documents.