Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

October 12, 2007 15:53 ET

Pinetree Capital Ltd. Increases Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 12, 2007) -

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

Pinetree Capital Ltd. ("Pinetree" of the "Company") (TSX:PNP) announces today that it has agreed with Genuity Capital Markets as lead agent on behalf of a syndicate of agents, including Westwind Partners Inc. (collectively, the "Agents"), to increase the size of its private placement (previously announced on October 10, 2007), to up to 12,500,000 Units for gross proceeds of up to $65,625,000.

Under the terms of the revised financing, the Agents have been engaged on a best efforts basis to sell up to 12,500,000 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 $5.30 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 Canada and offshore, including in the United Kingdom, pursuant to applicable exemptions.

Up to 1,100,000 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 that the financing will not be completed 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