Pinetree Capital Ltd Announces Unaudited Financial Results For The Three And Six Months Ended June 30, 2016
TORONTO, ONTARIO (August 5, 2016) – Pinetree Capital Ltd. (TSX:PNP) (“Pinetree” or the “Company”) today announced its financial results for the three and six months ended June 30, 2016. All financial information provided in this press release is unaudited and all figures are in $’000 except per share amounts and shares outstanding.
The following press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2016 and the accompanying notes, our Management Discussion and Analysis for the three and six months ended June 30, 2016, and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our annual Management Discussion and Analysis for the year ended December 31, 2015, which can be found on SEDAR at www.sedar.com.
Selected Financial Information
*Reflects share consolidation refer to Subsequent Event section of this press release
Second Quarter Financial Results
The net investment loss for the three months ended June 30, 2016 was $9,864 (three months ended June 30, 2015 – $2,108) as a result of net realized losses of $8,708 plus a net change in unrealized losses of $1,156 on investments.
For the three months ended June 30, 2016, the Company had a net change in unrealized loss on investments of $1,156 as compared to a net change in unrealized gain of $8,524 for the three months ended June 30, 2015. The net change in unrealized (loss) gain for the three months ended June 30, 2016 was primarily due to unrealized losses on certain of the Company’s investments offset by a foreign exchange gain on the Company’s investments in private companies denominated in US dollars. Net change in unrealized gain for the three months ended June 30, 2015, was due to the unrealized gain on the Company’s investments in junior resource companies and foreign exchange gain on the Company’s investments in private companies denominated in US dollars.
The net investment loss for the six months ended June 30, 2016 was $10,318 (six months ended June 30, 2015 – net investment loss of $5,657) as a result of net realized losses plus a net change in unrealized (losses) gains on investments.
For the six months ended June 30, 2016, the Company recorded net realized losses on disposal of investments of $9,842, as compared to $40,113 for the six months ended June 30, 2015.
As at June 30, 2016, the Company held investments at fair value totaling $11,331 as compared to $27,864 as at December 31, 2015, a 59% decrease, attributable to two factors: (a) in order to generate cash to fund operations and repay the Debentures, the Company undertook dispositions of investments which generated cash proceeds of $7,365 during the six months ended June 30, 2016; and (b) management’s estimates of the fair values of the remaining investments in private companies based on the facts and circumstances which existed at June 30, 2016.
During March 2016, the Company undertook an offering of rights to holders of its common shares. Contemporaneously, the Company entered into a purchase agreement whereby a corporation controlled by Peter Tolnai (“TolnaiCo”) would subscribe for common shares offered under the rights offering under certain conditions.
On April 29, 2016, the Company's shareholders exercised 849,103 rights to purchase 849,103 common shares of Pinetree under the rights offering with gross proceeds of $2,121. In addition, TolnaiCo purchased 1,412,202 common shares of Pinetree at the same subscription price of $2.50 per common share for gross proceeds to Pinetree of $3,531.
On May 31, 2016, the Company repaid the remaining principal amount and accrued interest payable of the Debentures for a total amount of $7,022. As at June 30, 2016, $nil principal amount of the Debentures was outstanding.
Subsequent Event - Share Consolidation
As previously announced, on July 20, 2016, the shares of the Company were consolidated on the basis of 1-for-100, and all applicable references to the number of shares, warrants, stock options and per share figures presented in this press release have been adjusted accordingly. The actual number of shares issued and outstanding post consolidation on July 20, 2016 will be slightly different than the share figures presented in this press release as a result of rounding of fractional interests resulting from the consolidation.
Forward Looking Statements
Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinetree or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Pinetree assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances.
Non-IFRS Measures, Non-GAAP Measures
NAV (net asset value per share) is a non-IFRS (international financial reporting standards) measure calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term NAV does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies. There is no comparable IFRS measure presented in Pinetree’s consolidated financial statements and thus no applicable quantitative reconciliation for such non-IFRS financial measure. The Company has calculated NAV consistently for many years and believes that NAV can provide information useful to its shareholders in understanding its performance and may assist in the evaluation of its business relative to that of its peers.
About Pinetree Capital Ltd.
Pinetree is a diversified investment and merchant banking firm focused on the small cap market, with early stage investments in technology, resource and biotechnology companies. Pinetree’s common shares are listed on the Toronto Stock Exchange (TSX) under the symbol “PNP”
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