Pinetree Capital Ltd. Announces Cure Of Event Of Default & Corporate Update
November 9, 2015
TORONTO, Canada (November 9, 2015) Pinetree Capital Ltd. (TSX: PNP; PNP.DB) is pleased to announce that the company has cured the “Event of Default” that resulted from its October 2014 breach of a debt covenant (the “Covenant”) contained in the indenture governing the company’s 10% Convertible Secured Debentures maturing May 31, 2016 (the “Debentures”). Pinetree’s debt-to-assets ratio was below 33% as at October 31, 2015 in compliance with the Covenant.
The effect of the cure is that the holders of the Debentures (the “Debentureholders”) no longer have any rights or remedies in respect of the Event of Default, including the right to immediately demand repayment of the principal amount of the Debentures. Furthermore, the company is no longer subject to the forbearance agreement that it entered into with the Debentureholders in February 2015 in connection with the Event of Default, all of the terms and conditions of which were complied with by Pinetree during the forbearance period.
With the expiration of the forbearance period on October 31st, the Investment Oversight Committee of the board of directors was dissolved in accordance with its mandate and Dennis Logan, Andrew Steuter and John Varghese, the Debentureholder nominees to the company’s board of directors, will be resigning effective November 9, 2015.
The company is also no longer required to continue the monthly disclosure of its net asset value per share (NAV), which it will cease doing following the October NAV disclosure. As Pinetree’s private company investments have become a more significant part of the company’s portfolio by fair value, monthly NAV calculations are less meaningful. The company will continue to disclose quarterly NAV along with its financial results.
“We’ve worked responsibly and diligently over the course of the last eight months to ensure that Pinetree remained on-side of the commitments made to debt holders in February, when we undertook this process”, said Richard Patricio, Pinetree’s Chief Executive Officer. “Our task was certainly not made easier by the challenging valuations in the junior resource and tech spaces that persisted throughout the year. I am quite proud of the Pinetree team and of what we have accomplished in a relatively brief and certainly challenging period of time. With our debt level reduced from $54.8 million to $9.7 million and our return to being in compliance with our covenants, we can focus more completely on growing the portfolio.”
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”.
Richard Patricio, LL.B.
Chief Executive Officer
Pinetree Capital Ltd.
130 King Street West, Suite 2500
Toronto, Ontario, Canada, M5X 2A2