Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

April 16, 2014 16:11 ET

Pinetree Capital Announces Private Placement

TORONTO, CANADA--(Marketwired - April 16, 2014) -

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

Pinetree Capital Ltd. (TSX:PNP) announces today that it is proposing to complete a non-brokered private placement to sell up to 15,555,555 units (the "Units"), at a price of $0.45 per Unit, for aggregate gross proceeds of up to $7 million (the "Financing").

Each Unit will consist of one common share and one-half of one common share purchase warrant of Pinetree (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one common share of Pinetree, at a price of $0.75, for a period of 36 months from the closing date of the Financing, provided that, if the weighted-average trading price of the company's common shares on the Toronto Stock Exchange is $1.25 or more for any period of twenty consecutive trading days (commencing after the four-month hold period applicable to the Units on closing), Pinetree may accelerate the expiry date of the Warrants upon notice to the holders.

The proceeds of the Financing will be used for working capital purposes, which may include the purchase for cancellation of a portion of the company's outstanding convertible debentures.

Pinetree may pay a finder's fee in securities to arm's length parties that assist the company in the sale of Units. Up to 50% of the Financing may be purchased by Pinetree insiders.

The Units may be sold to eligible purchasers in Canada pursuant to registration and prospectus exemptions and in other jurisdictions pursuant to applicable exemptions.

Completion of the Financing is subject to certain conditions, including the approval of the Toronto Stock Exchange. Subject to the satisfaction of all of the conditions, the Financing is expected to close in May 2014.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Pinetree

Pinetree Capital Ltd. ("Pinetree") was incorporated under the laws of the Province of Ontario and its shares are 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 following sectors: Precious Metals, Uranium and Technology. Pinetree's investment approach is to develop a macro view of a sector, build a position consistent with the view by identifying micro-cap opportunities within that sector, and devise an exit strategy designed to maximize our relative return in light of changing fundamentals and opportunities. Pinetree is recognized as a value added partner.

Contact Information

  • Pinetree Capital Ltd.
    Sheldon Inwentash, CPA, CA.
    Chairman & CEO
    416-941-9600

    Pinetree Capital Ltd.
    Gerry Feldman, CPA, CA.
    CFO & Vice President, Corporate Development
    416-643-3884
    feldman@pinetreecapital.com

    Investor Relations: Pinetree Capital Ltd.
    Richard Patricio, LL.B.
    Vice President, Legal and Corporate Affairs
    416-941-9600
    ir@pinetreecapital.com

    Pinetree Capital Ltd.
    130 King Street West, Suite 2500
    Toronto, Ontario, Canada, M5X 2A2
    www.pinetreecapital.com