Pinetree Capital Ltd. Acquires Securities Of Rare Earth Metals Inc.
November 23, 2010
TORONTO, Canada Pinetree Capital Ltd. (TSX: PNP), announces that on November 22, 2010, it acquired ownership of 500,000 common shares (“Common Shares”) and 250,000 common share purchase warrants (the “Warrants”) of Rare Earth Metals Inc. (“Rare Earth”). Each Warrant entitles the holder to acquire one common share of Rare Earth at a price of $0.60 until November 22, 2011. In the event that the Warrants are fully exercised, these holdings represent approximately 1.0% of the total issued and outstanding common shares of Rare Earth as of November 22, 2010, calculated on a partially diluted basis assuming the exercise of the Warrants only. As a result of this transaction, Pinetree and its joint actors collectively held, as at November 22, 2010, an aggregate of 8,813,000 common shares of Rare Earth, including the Common Shares and rights to acquire an additional 2,250,000 common shares of Rare Earth upon exercise of certain convertible securities (the “Convertible Securities”), including the Warrants. Of these totals, Pinetree owns 6,250,000 common shares, including the Common Shares and all of the Convertible Securities directly. In the event that the Convertible Securities are fully exercised, the holdings of Pinetree and its joint actors represents a total of 11,063,000 common shares of Rare Earth, or approximately 13.9% of all issued and outstanding common shares as at November 22, 2010, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. In the event that the Convertible Securities are fully exercised, the direct holdings of Pinetree represents a total of 8,500,000 common shares of Rare Earth, or approximately 10.7% of all issued and outstanding common shares as at November 22, 2010, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only.
These transactions were made for investment purposes and Pinetree or its joint actors could increase or decrease their investment in Rare Earth depending on market conditions or any other relevant factor.
Pinetree Capital Ltd. ("Pinetree") was incorporated under the laws of the Province of Ontario and its shares are publicly-traded on the Toronto Stock Exchange (“TSX”) under the symbol “PNP”. 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 and Coal, Oil & Gas, Precious Metals, Base Metals and Potash, Lithium and Rare Earths. Pinetree’s investment approach is to develop a macro view of a sector, build a position consistent with the view by identifying micro-cap opportunities within that sector, and devise an exit strategy designed to maximize our relative return in light of changing fundamentals and opportunities.
For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com
|Sheldon Inwentash||Richard Patricio|
|Chairman & CEO||Vice President, Legal and Corporate Affairs|
|Pinetree Capital Ltd.||Pinetree Capital Ltd.|
|130 King Street West, Suite 2500||130 King Street West, Suite 250|
|Toronto, Ontario, Canada, M5X 1A9||Toronto, Ontario, Canada, M5X 1A9|
|Website: www.pinetreecapital.com||Phone: 416-941-9600|