Pinetree Capital Ltd. Announces Closing Of Private Placement
April 16, 2007
Pinetree Capital Ltd. (“Pinetree” or the “Company”) (TSX: PNP) is pleased to announce that its previously-announced private placement has closed, raising gross proceeds of $121,300,000 through the issuance and sale of 10,000,000 units at a price of $12.13 per unit. Each unit was comprised of one common share of Pinetree (a “Common Share”) and one-half of one common share purchase warrant of Pinetree. Each whole common share purchase warrant entitles the holder to acquire one Common Share at a price of $15.00 per share until expiry on April 16, 2012. The Toronto Stock Exchange has conditionally approved the listing of the common share purchase warrants upon completion of the four-month hold period attaching to the securities, subject to the satisfaction by Pinetree of the customary conditions of the exchange.
The units were sold through a syndicate of agents, led by Genuity Capital Markets and including Westwind Partners Inc., Canaccord Capital Corporation and Kingsdale Capital Markets Inc. As consideration for their services under the private placement, the agents received a cash commission of $6,671,500 and compensation options exercisable for up to 550,000 Common Shares at a price of $12.13 per share until expiry on April 16, 2009.
The number of securities sold under the private placement, the number of compensation options issued to the agents, the purchase price of the units and the exercise prices of the warrants and the compensation options have all been adjusted to reflect the two-for-one stock split effected by the Company by way of a stock dividend which was paid on April 13, 2007.
Pinetree intends to use the proceeds of the private placement for its future investment activities, to repay certain indebtedness and for general corporate purposes.
Pinetree Capital Ltd. ("Pinetree" or the "Company") was incorporated under the laws of the
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, 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 www.pinetreecapital.com.
Investor Relations Contact for Pinetree Capital Ltd.:
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.
130 King Street West, Suite 2500
Toronto, Ontario, Canada, M5X 1A9
Email: firstname.lastname@example.org Web Site: www.pinetreecapital.com