Pinetree Capital Ltd.

Pinetree Capital Ltd.

September 18, 2007 10:30 ET

Pinetree Capital Ltd. Acquires Securities of Primary Petroleum Corp.

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2007) - Pinetree Capital Ltd. (TSX:PNP), a Canadian investment company, announces that on September 18, 2007 it acquired ownership of 1,000,000 common shares ("Common Shares") of Primary Petroleum Corp. ("Primary") and 500,000 common share purchase warrants (the "Warrants") of Primary on Primary's initial public offering on the TSX Venture Exchange. Each Warrant entitles the holder thereof to acquire one additional common share until September 18, 2009 at a price of $1.35. In the event that the Warrants are fully exercised, these holdings represent approximately 4.2% of the total issued and outstanding common shares of Primary as of September 18, 2007, calculated on a partially diluted basis assuming the exercise of the Warrants only. As a result of this transaction, Pinetree and its joint actors held, as at September 18, 2007, an aggregate of 3,196,000 common shares of Primary and rights to acquire an aggregate of 2,975,334 common shares of Primary upon exercise of convertible securities, including the Warrants (collectively, the "Convertible Securities"). Of these totals, Pinetree holds 2,250,000 common shares and 1,416,667 common share purchase warrants, including the Warrants directly. If Pinetree and its joint actors were to exercise all of these Convertible Securities, their combined ownership would represent a total of 6,171,334 common shares of Primary, or approximately 16.0% of such shares outstanding as of September 18, 2007, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. In the event that Pinetree were to exercise all of its 1,416,667 common share purchase warrants, its direct holdings would represent approximately 9.9% of such shares outstanding as of September 18, 2007, calculated on a partially diluted basis assuming the exercise of the 1,416,667 warrants only.

These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Primary depending on market conditions or any other relevant factor.

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" and is included in the Standard & Poor's/Toronto Stock Exchange composite index. 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

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
    Media Relations:
    Pinetree Capital Ltd.
    Wanda Cutler
    Director of Corporate Communications
    (416) 860-1717