CCNMATTHEWS
Pinetree Capital Ltd.
April 16, 2007 - 08:42:20 AM
Pinetree Capital Ltd. Announces Closing of Private Placement
TORONTO, ONTARIO--(CCNMatthews - April 16, 2007) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES
Pinetree Capital Ltd. ("Pinetree" or the "Company") (TSX:PNP) is pleased to
announce that its previously-announced private placement has closed, raising
gross proceeds of $121,300,000 through the issuance and sale of 10,000,000
units at a price of $12.13 per unit. Each unit was comprised of one common
share of Pinetree (a "Common Share") and one-half of one common share purchase
warrant of Pinetree. Each whole common share purchase warrant entitles the
holder to acquire one Common Share at a price of $15.00 per share until expiry
on April 16, 2012. The Toronto Stock Exchange has conditionally approved the
listing of the common share purchase warrants upon completion of the
four-month hold period attaching to the securities, subject to the
satisfaction by Pinetree of the customary conditions of the exchange.
The units were sold through a syndicate of agents, led by Genuity Capital
Markets and including Westwind Partners Inc., Canaccord Capital Corporation
and Kingsdale Capital Markets Inc. As consideration for their services under
the private placement, the agents received a cash commission of $6,671,500 and
compensation options exercisable for up to 550,000 Common Shares at a price of
$12.13 per share until expiry on April 16, 2009.
The number of securities sold under the private placement, the number of
compensation options issued to the agents, the purchase price of the units and
the exercise prices of the warrants and the compensation options have all been
adjusted to reflect the two-for-one stock split effected by the Company by way
of a stock dividend which was paid on April 13, 2007.
Pinetree intends to use the proceeds of the private placement for its future
investment activities, to repay certain indebtedness and for general corporate
purposes.