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Junex's closes the second portion of a private placement for proceeds of US$10 million

Fasken
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Institutional investors

Junex Inc. is pleased to announce the closing of the second portion of the previously-announced private placement for proceeds of $10,000,000. This non-brokered offering includes: An amount of $7,500,000 to be raised through the issuance of units at a price of $0.90 each, each unit made up of one share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to subscribe for one common share at a price of $1.25 for a period of 24 months and $1.40 for the subsequent 12 months. An amount of $2,500,000 to be raised through the issuance of Series A Debentures and Series B Debentures, each in the aggregate principal amount of $1,250,000 and convertible into common shares at a price of $1.17 per share. The Debentures are also accompanied by a total number of 1,388,890 warrants. Each warrant will entitle the holder to subscribe for one common share at a price of $1.25 for a period of 24 months and $1.40 for the subsequent 12 months. Both debentures will mature after five years and bear interest at an annual rate of 12% payable semi-annually. Junex may elect to pay up to 50% of the interest charges in common shares, subject to the approval of the TSX Venture Exchange. Both Debentures will be redeemable in cash at all times at the Company's option (subject to payment of a 10% premium on the outstanding principal), subject to conversion at the holder's option if and when Junex elects to so redeem. The Series B Debenture will become convertible at Junex's option at a price of $1.17 per share if (a) the Company obtains a lease to produce petroleum with respect to its Galt project and (b) the 20-day volume weighted average price of the Company's shares is equal to or greater than $1.17. Fasken Martineau acted as legal counsel for institutional investors with a team led by Frank Mariage and including Steve Boucratie and Pierre-Olivier Charlebois.

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