TriNorth Capital Inc.
TSX : TRT

TriNorth Capital Inc.

November 16, 2007 17:20 ET

TriNorth Capital Files Non-Offering Final Prospectus and Provides Detail on Recent Investments

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2007) - TriNorth Capital Inc. (TSX:TRT) filed a final prospectus dated November 13, 2007, qualifying the units (the "Units") underlying the special warrants which were issued on August 30, 2007. Each Unit will consist of one common share and one warrant. The special warrants will be exercised on November 22, 2007 in accordance with their terms and both the common shares and warrants will be freely tradable on the TSX.

Lawrence Asset Management Inc., as investment manager of TriNorth, has invested a portion of the proceeds of the special warrant financing, as follows:

1. A C$4,997,500 equity investment at C$0.25/share in Buchanan Renewable Energies Inc. ("Buchanan"), a Liberian-based alternative energy company. As part of this investment TriNorth was also issued 4,995,000 warrants with a two year maturity and C$0.35/share strike price. This represents approximately a 24% ownership stake in the company on a fully-diluted basis.

Buchanan's principal business activities will focus on excavating non-producing rubber trees in Liberia and exporting biomass in the form of wood chips to electric utilities in the UK and the rest of Europe. The business model is scalable across other West African nations and further opportunities exist to cost-effectively produce domestic electricity from the bark and roots of trees. The management team has over 30 years of operating experience in Africa.

2. A US$4,995,000 common share investment at US$0.90/share in Saber Energy Corporation ("Saber"), a Botswana-based early stage private company focused on Coal Bed Methane exploration. This represents approximately an 11% ownership stake in the company.

Saber intends to build a gas-fired power station and sell all electricity generated under a long-term power purchase agreement to a South African utility. South Africa is significantly under powered and is committed to invest in power generation. Botswana is a financially and politically stable country. Saber's management team has an impressive track record of commercializing and eventually monetizing resource projects in Africa.

3. A US$525,000 equity investment at US$0.10/share and up to US$1,500,000 in a bridge loan at15% interest in Russo-Forest Corporation ("Russo"), a Russian-based forestry company. This represents a 25% ownership stake in the company.

Russo's principal business activities will focus on harvesting wood, through its wholly owned subsidiary SeverLes LLC, in Russia's North West and Far East in order to satisfy growing demand for wood products in Russia, Europe and Asia. Russo has 664,000 hectares of standing timber lands, long term lease contracts with exclusive prolongation rights, proximity to end markets, existing infrastructure, experienced local management, government support of investments in Russia's forestry industry, and the potential to consolidate timberlands in Russia's North West and Far East.

TriNorth intends to provide a monthly net asset value per share on the last business day of each month. The net asset value per share on November 16, 2007 is $0.176.

TriNorth Capital Inc. is a TSX-listed company focused on making investments that provide long-term capital growth through a diversified portfolio of private and public companies. All investment activities of TriNorth are managed by Lawrence Asset Management Inc., a leading Canadian alternative investment asset manager.

This release contains forward-looking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct, and such forward looking statements should not be unduly relied upon. These statements speak only as of the date of this release, and are subject to a number of risks and uncertainties, including the factors discussed in the company's current and previous filings with the Canadian securities regulatory authorities. Actual results could differ materially from these forward-looking statements.

Contact Information

  • Marc Robinson
    (416) 362-8282