Pinetree Capital Announces Number Of Shares Issuable Under $3 Million Partial Redemption Of Convertible Debentures
January 4, 2016
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, Ontario (January 4, 2016) – Pinetree Capital Ltd. (TSX: “PNP”; “PNP.DB”) announces that it will issue an aggregate of 24,201,355 common shares of the company (the “Redemption Shares”) in payment of $1 million of the $3 million principal amount of its 10.0% Convertible Secured Debentures due May 31, 2016 (the “Debentures”) to be redeemed on January 8, 2016 (the “Redemption Date”). The remaining $2 million principal amount of Debentures will be redeemed for cash.
The number of Redemption Shares is based on a price per share of $0.04132, which was calculated in accordance with the terms of the Debentures as 95% of $0.04349 - the volume weighted average trading price of Pinetree’s common shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on the fifth trading day preceding the Redemption Date.
The Redemption Shares represent approximately 12% of the total number of common shares of the company currently outstanding.
As previously announced, the redemption of $3 million principal amount of Debentures on the Redemption Date will be 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 $1,010.68 for each $1,000 principal amount of Debentures redeemed (less any applicable taxes required to be withheld). For each $1,000 principal amount redeemed, a holder of record at the close of business on January 6, 2016 will receive approximately $666.67 in cash (plus accrued interest of $10.68) and 8067 common shares.
All accrued interest payable on redemption will be paid in cash and no fractional shares will be issued in payment of the $1 million principal amount redeemed in shares. In lieu thereof, Pinetree will pay the cash equivalent determined on the basis of $0.04349 per share (less applicable tax required to be deducted, if any).
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|