Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

October 23, 2007 09:27 ET

Pinetree Capital Ltd. Announces Closing of $72 Million Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 23, 2007) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Pinetree Capital Ltd. ("Pinetree" or the "Company") (TSX:PNP) is pleased to announce that it has closed its previously-announced private placement raising gross proceeds of $72,187,500 through the issuance and sale of 13,750,000 units at a price of $5.25 per unit, which includes the exercise in full by the agents of their overallotment option for 1,250,000 units. Each unit was comprised of one common share of Pinetree (a "Common Share") and one-half of one common share purchase warrant of Pinetree. Each whole common share purchase warrant entitles the holder to acquire one Common Share at a price of $6.50 per share until expiry on October 23, 2012.

The units were sold through a syndicate of agents, led by Genuity Capital Markets and including Westwind Partners Inc. As consideration for their services under the private placement, the agents received a cash commission of $3,760,313 and compensation options exercisable for up to 756,250 Common Shares at a price of $5.30 per share until expiry on October 23, 2009.

Pinetree intends to use the proceeds of the private placement for future investment activities and for general corporate purposes.

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 the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. 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.

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