Pinetree Capital Announces Completion Of Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, Canada (May 28, 2014) Pinetree Capital Ltd. (TSX: PNP) announces the closing today of the remaining portion of its non-brokered private placement (the “Financing”), pursuant to which the company raised an additional $2,000,000 in gross proceeds from the issuance and sale of 4,444,444 units, at a price of $0.45 per unit. In total, Pinetree raised total gross proceeds of $10,500,000 under the Financing from the issuance and sale of an aggregate of 23,333,333 units.
Each Unit was comprised of one common share and one-half of one common share purchase warrant of Pinetree. Each whole warrant entitles the holder to purchase one common share of the company, at a price of $0.75, until expiry on May 26 2017, provided that, if the weighted-average trading price of the company’s common shares on the Toronto Stock Exchange is $1.25 or more for any period of twenty consecutive trading days commencing after September 26, 2014, Pinetree may accelerate the expiry date of the warrants upon at least 30 days’ notice to the holders.
The proceeds of the Financing will be used for working capital purposes, which may include the purchase for cancellation of a portion of the company’s outstanding convertible debentures.
Officers and directors of Pinetree (and their associates) purchased an aggregate of 3,933,333 units under the Financing, representing approximately 17% of the total number of units sold under the Financing.
Pinetree paid finders’ fees in the form of an aggregate of 1,331,557 units to third parties who assisted the company in the Financing, including 355,556 units which were issued in connection with today’s closing. The units have the same terms and conditions as the units sold in the Financing.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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