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Summary
- Canadian firm Just Energy Inc (TSX:JE) has volunteered to delist its stocks from the Toronto Stock Exchange (TSX).
- It submitted a notice to remove its shares from the trading platform of Tuesday morning, March 16.
- The gas and electricity retailer plans to apply for a listing on the junior platform of Toronto Stock Exchange Venture (TSXV).
After a series of unfortunate events, Canadian firm Just Energy Inc (TSX:JE) has volunteered to delist its stocks from the Toronto Stock Exchange (TSX). It submitted a notice to remove its shares from the trading platform of Tuesday morning, March 16.
The gas and electricity retailer plans to apply for a listing on the junior platform of Toronto Stock Exchange Venture (TSXV).
What caused this move for Just Energy? Let’s find out.
Just Energy Inc (TSX:JE)
The freezing winters and electricity outages in Texas last month brought Just Energy down on its knees. The company had ended the 2021 third fiscal quarter on 31 December 2020 with cash and cash equivalents of C$ 66.6 million and a total liquidity of C$ 91.2 million. Then came the crippling storms of February 2021 to Texas, and left Just Energy with a loss of C$ 315 million.
After this crushing loss, the electricity supplier filed for bankruptcy and court protection in Canada in late February. It also announced receiving bankruptcy protection in the US on March 9.
Source: Pixabay
After it announced the receipt of creditor protection in the US under the country’s Chapter 15 bankruptcy laws, Just Energy’s stocks began a downward spiral. The energy stock crashed by about 52 per cent between March 9 and March 15, with its price getting cut in half from C$ 10.3 to C$ 4.92.
The stock currently posts a decline of nearly 18 per cent year-to-date (YTD) and that of about 80 per cent for the past one year.
Just Energy’s Delisting Orders
Just Energy had announced last week, on March 10, that both the Toronto Stock Exchange and the New York Stock Exchange (NYSE) are looking to delist its stocks from their platforms.
The Mississauga-based energy retailer submitted its notice to voluntarily delist its stocks from the TSX after the bourse decided to hold a review of its eligibility to continue trading on the platform following the creditor protection in the US.
With a market cap of a little over C$ 236 million, Just Energy stocks posted a return on equity (ROE) of 55.48 per cent and price-to-cash flow (P/CF) of 4.10, as per TSX.
The delisting of its shares from the TSX is unlikely to impact its continued business operations or services. Just Energy’s President and Chief Executive Officer (CEO) Scott Gahn said in a statement that the company “remains focused” on helping out its customers and working with its stakeholders in the wake of the delisting process.
While Just Energy has applied for a TSXV listing, it added that there is no guarantee that the junior trading platform approve the request.
