Just Energy Announces "Substantial Financial Impact" of Texas Weather Event Absent "Corrective" Action By Gov't; Estimates Loss Could Be Approximately $250 Million
Could Be Materially Adverse To Just Energy's Ability To Continue As A Going Concern
February 22, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Just Energy Group Inc. ('Just Energy' or the 'Company') announced that it has, "updated its previous announcement that management is continuing to assess the impact of the extreme cold temperatures throughout the State of Texas (the 'Weather Event') on the Company, and cannot finalize its unaudited interim condensed consolidated financial statements for the three and nine months ended December 31, 2020, its management discussion and analysis on the Interim Financial Statements, and the CEO and CFO certificates in respect of the Interim Financial Statement (collectively 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."
Accordingly, Just Energy now intends to file the Reporting Documents on or about February 26, 2021.
"The financial impact of the Weather Event is not currently known due to challenges the Company is experiencing in obtaining accurate information regarding customers’ usage from the applicable utilities. However, unless there is corrective action by the Texas government, because of, among other things, the sustained high prices from February 13, 2021 through February 19, 2021, during which real time market prices were artificially set at USD $9,000/MWh for much of the week, it is likely that the Weather Event has resulted in a substantial negative financial impact to the Company. Based on current information available to the Company as of the time of this press release, the Company estimates that the financial impact of the Weather Event on the Company could be a loss of approximately USD $250 million (approximately CAD $315 million), but the financial impact could change as additional information becomes available to the Company. Accordingly, the financial impact of the Weather Event on the Company once known, could be materially adverse to the Company’s liquidity and its ability to continue as a going concern. The Company is in discussions with its key stakeholders regarding the impact of the Weather Event and will provide an update as appropriate," Just Energy said
"Further to the Company’s application to the Ontario Securities Commission, its principal regulator, the Company has received a management cease trade order in accordance with National Policy 12-203 - Management Cease Trade Orders ('NP 12-203')," 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," Just Energy said
"The Company confirms that it intends to satisfy the provisions of the alternative information guidelines found in Sections 9 and 10 of NP 12-203 for so long as it is delayed in filing the Reporting Documents," Just Energy said