Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

October 10, 2007 09:45 ET

CORRECTION FROM SOURCE: Pinetree Capital Ltd. Announces Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 10, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

The following corrects and replaces the release sent at 8:30amET for Pinetree Capital. There was an error in the dollar amount in the first and third paragraphs. It stated at a price of $6.00 per unit and it should have stated a price of $5.25 per unit. The complete and corrected release follows:

Pinetree Capital Ltd. ("Pinetree" of the "Company") (TSX:PNP) is pleased to announce that it has entered into an agreement with Genuity Capital Markets as lead agent on behalf of a syndicate of agents, including Westwind Partners Inc. (collectively, the "Agents") to complete a best efforts private placement financing to sell up to 8,000,000 units of Pinetree at a price of $5.25 per unit (a "Unit"). Each Unit will be comprised of one common share of Pinetree and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to acquire one common share of Pinetree, for a period of 5 years following the closing of the financing, at an exercise price of $6.50 per common share. Closing is expected to occur on or about October 23, 2007.

It is anticipated that the net proceeds of the private placement will be used by Pinetree for future investment activities and for general corporate purposes.

For their services, the Agents will receive cash commission equal to 5.5% of the gross proceeds raised in this private placement and compensation warrants (the "Compensation Warrants") entitling the Agents to purchase such number of common shares equal to 5.5% of the aggregate number of Units sold pursuant to the private placement. Each Compensation Warrant will entitle the Agents to purchase one common share of the Company at a price of $5.25 per common share for a period of 24 months following the closing.

Completion of the private placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX. The units will be sold pursuant to exemptions from the prospectus requirements to purchasers in all of the provinces of Canada and offshore including in the United Kingdom pursuant to applicable exemptions.

Up to 10% of the units may be purchased by insiders of Pinetree.

About Pinetree

Pinetree Capital Ltd. ("Pinetree" or the "Company") was incorporated under the laws of the Province of Ontario and is publicly traded on the Toronto Stock Exchange ("TSX") under the symbol "PNP". Pinetree is a diversified investment and merchant banking firm focused on the small cap market. Pinetree's investments are primarily in the resources sector: Uranium, Oil & Gas, Molybdenum, Precious Metals and Base Metals. Pinetree's investment approach is to build a macro position in a sector, find the micro-cap opportunities in that sector and work with those companies to build them to commercial production and create an exit.

For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.

This news release contains forward-looking statements within the meaning of applicable Canadian securities laws. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Pinetree's results to differ materially from expectations. These include risks relating to market fluctuations, investee performance and other risks. These forward-looking statements speak only as of the date hereof. Pinetree disclaims any intent or obligation to update these forward-looking statements, except as required by law.

Contact Information

  • Investor Relations:
    Pinetree Capital Ltd.
    Larry Goldberg, C.A.
    Executive Vice President and Chief Financial Officer
    (416) 941-9600
    Email: ir@pinetreecapital.com
    or
    Media Relations:
    Pinetree Capital Ltd.
    Wanda Cutler
    Director of Corporate Communications
    (416) 860-1717
    Website: www.pinetreecapital.com