Pinetree Capital Announces Renewal Of Normal Course Issuer Bid For Convertible Debentures
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TORONTO, Ontario (June 2, 2015) – Pinetree Capital Ltd. (TSX: “PNP”; “PNP.DB”) announces the renewal of the company’s normal course issuer bid (the “Bid”) for its 10% Convertible Secured Debentures due May 31, 2016 (“Debentures”). Under the terms of the Bid, which will commence on June 5, 2015 and end on June 4, 2016, the company can purchase up to $3,460,200 principal amount of Debentures, representing 10% of the “public float” of the Debentures currently outstanding but after giving effect to the partial redemption of $10,000,000 principal amount of Debentures to be completed on June 5th.
Purchases of Debentures under the Bid can be made through the facilities of the TSX and on other alternative Canadian trading systems, up to a maximum of $14,985 principal amount per day (subject to the company’s ability to rely upon the “block purchase exception” under the TSX rules), representing 25% of the average daily trading volume of $59,943 principal amount for the past six months. All purchases will be made at market prices and otherwise in accordance with the rules of the TSX, and all Debentures purchased under the Bid will be cancelled.
Purchasing Debentures (for cancellation) under the Bid is consistent with Pinetree’s overall objective of reducing the company’s outstanding debt over the course of the year.
As at June 1, 2015, an aggregate of $44,822,000 principal amount of Debentures are outstanding, $10,000,000 principal amount of which will be redeemed on June 5, 2015 pursuant to the company’s previously announced partial redemption. During the previous twelve months, Pinetree purchased an aggregate of $6,042,000 principal amount of Debentures under its 2014 normal course issuer bid, at a volume weighted average price of $85.17 per $100 principal amount of Debentures. The 2014 bid expired on May 20, 2015.
Pinetree has also established an automatic securities purchase plan with its broker, which will allow for purchases of Debentures under the Bid at all times, including periods when the company would ordinarily be precluded from doing so due to regulatory restrictions or internal trading blackout periods (such periods, “Blackout Periods”). The plan provides standing instructions to the broker regarding the parameters within which purchases can be made under the Bid during Blackout Periods, without involving the exercise of the company’s/management’s discretion, and will terminate upon the earlier of: (a) the date upon which Pinetree has acquired the maximum amount of Debentures permitted under the Bid; (b) the expiry of the Bid; and (c) the date upon which the plan may otherwise be terminated by the company in accordance with its terms.
Pinetree is a diversified investment and merchant banking firm focused on the small cap market, with early stage investments in resource, biotechnology and technology companies. Pinetree’s shares are listed on the Toronto Stock Exchange (“TSX”) under the symbol “PNP”.
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