Pinetree Capital Announces January $3 Million Partial Redemption Of Convertible Debentures, With $1 Million To Be Paid In Shares
November 26, 2015
TORONTO, Ontario (November 26, 2015) – Pinetree Capital Ltd. (TSX: “PNP”; “PNP.DB”) announces that it is once again exercising its right to partially redeem Pinetree’s 10.0% Convertible Secured Debentures due May 31, 2016 (the “Debentures”), in accordance with the terms of the indenture governing the Debentures.
On January 8, 2016 (the “Redemption Date”), Pinetree will redeem $3 million principal amount of Debentures, representing 30.8% of the $9.716 million aggregate principal amount of Debentures currently outstanding. The Debentures will be redeemed on a pro rata basis at par, together with all accrued and unpaid interest thereon up to but excluding the Redemption Date, for a total redemption amount equal to $1,010.6849 for each $1,000 principal amount of Debentures redeemed (less any applicable taxes required to be withheld).
In accordance with the terms of the Debentures, Pinetree has elected to satisfy its obligation to pay $1 million of the $3 million principal amount of Debentures redeemed by issuing and delivering common shares of Pinetree in lieu of cash to Debenture holders. The number of common shares to be issued in payment will be determined by dividing $1 million by 95% of the market price of the common shares (the “Share Price”), calculated as the volume weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on the fifth trading day preceding the Redemption Date.
No fractional shares will be issued on redemption. In lieu thereof, Pinetree will pay the cash equivalent determined on the basis of the Share Price (less any tax required to be deducted, if any). All accrued interest payable on redemption will be paid in cash.
The issuance of common shares in partial payment of the redemption amount is subject to the satisfaction of certain conditions contained in the indenture governing the Debentures, including the approval of the Toronto Stock Exchange, failing which the total redemption amount will be paid in cash.
Pinetree anticipates announcing the Share Price to be used to calculate the number of common shares that each holder of Debentures will receive on the partial redemption on or about January 4, 2016.
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 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|