Shares of Just Energy Group (OTC:JE) dropped 30% early in today's session, and remained down 29% as of 11 a.m. EDT. The drop follows a spike in shares earlier this month when it announced its recapitalization plan was close to being finalized.
The retail energy provider, which operates separately from public electric utilities, confirmed today that it finalized its previously announced restructuring plan, and reconstituted its board of directors and some executive management positions.
Shares in the company had previously spiked as the recapitalization plan was announced, and investors are taking profits today as share dilution is implemented.
The financial restructuring was cheered by investors as it neared finalization. The plan "strengthens and de-risks the business and positions Just Energy for sustainable growth as an independent industry leader," according to the company.
Shares more than doubled in anticipation of the plan's final approval. But the implementation of a 1-for-33 reverse stock split and the exchange of debt and preferred shares into common stock have investors taking profits today.
Also included in the plan is a settlement of litigation related to the 2018 acquisition of Filter Group, resulting in a payment of $1.8 million in cash, and almost 430,000 shares to Filter Group shareholders, adding to share dilution.
Just Energy also named a new chief financial officer today, with the previous CFO becoming the new chief commercial officer, focusing on the company's gross margin.