/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, April 27, 2016 /CNW/ - Pinetree Capital
Ltd. (TSX: "PNP") announces the expiry of its previously
announced rights offering. All unexercised rights expired at
4:00 p.m. (Toronto time) on April
26, 2016 (the Expiry Time) and are void and of no
value. Details of the rights offering are set out in the
amended and restated rights offering notice dated March 21, 2016, and the amended and restated
rights offering circular dated March 21,
2016, which are available under Pinetree's profile at
www.sedar.com.
Under the rights offering, 84,910,292 rights were exercised
prior to the Expiry Time entitling the holders thereof to acquire
an aggregate of 84,910,292 common shares of Pinetree at a
subscription price of $0.025 per
common share for gross proceeds to Pinetree of C$2,122,757.30. In addition, in accordance
with the terms of the rights offering, a private company controlled
by Peter Tolnai, will acquire
141,220,218 common shares of Pinetree at a same subscription price
of $0.025 per common share for gross
proceeds to Pinetree of C$3,530,505.45 (the Tolnai Purchase).
Closing of the rights offering and the Tolnai Purchase is
expected to be completed at 8:00 a.m.
on April 29, 2016.
After issue of the common shares under the rights offering and
the Tolnai Purchase, Pinetree will have 452,261,020 common shares
issued and outstanding, of which the Tolnai Purchaser will hold
approximately 31.2%.
The aggregate gross proceeds to Pinetree resulting from the
offering and the Tolnai Purchase will be C$5,653,262.75, the net proceeds of which will be
allocated to the payment of the outstanding principal amount and
accrued interest on Pinetree's convertible debentures at maturity
on May 31, 2016.
About Pinetree
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".
This press release contains forward-looking information based on
current expectations, including but not limited to our expectations
in connection with the rights offering and Tolnai Purchase,
including the use of proceeds and events which are proposed to
occur on closing. Forward-looking information is often, but not
always, identified by the use of the words "contemplate",
"estimate", "expect" and "anticipate" and statements that an event
or result "may", "will", "should", "could" or "might" occur and any
similar expressions or negative variations thereof.
In providing forward-looking information in this press release,
we have made numerous assumptions regarding the rights offering and
Tolnai Purchase, which we believe to be reasonable, including
assumptions relating to: (i) the satisfaction or waiver of all
conditions to the completion of the rights offering and Tolnai
Purchase; (ii) the expected actions of third parties; and (iii) the
outcome of the rights offering and related transactions, including
the expected use of proceeds. Forward-looking information entails
various risks and uncertainties however that could cause actual
results to differ materially from those reflected in the
forward-looking information. Specific risks that could cause actual
results to differ materially from those anticipated or disclosed in
this press release include, but are not limited to: (i) failure to
satisfy the conditions to complete the rights offering and Tolnai
Purchase, including failure to receive required approvals; (ii) the
occurrence of any event, change or other circumstance that could
give rise to the termination of the Tolnai Purchase Agreement;
(iii) the delay of completion or failure to complete the rights
offering or Tolnai Purchase for any other reason; (iv) the amount
of costs, fees and other expenses incurred in connection with the
rights offering and Tolnai Purchase and working capital
requirements which can involve unknown or unexpected expenditures;
(v) the risk that the anticipated effects of the rights offering
and Tolnai Purchase, if completed, may not result in the outcomes
expected by us; and (vi) fluctuations in the fair value of
investments due to thinly traded securities, issuer-specific events
that effect a company's market value or general market conditions.
In addition, general risks relating to capital markets, economic
conditions, regulatory changes, as well as the operations of our
business may also cause actual results to differ materially from
those anticipated or disclosed in this press release.
Forward-looking information are not guarantees of future
performance, and management's assumptions upon which such
forward-looking information are based may prove to be
incorrect.
Accordingly, there can be no assurance that actual events or
results will be consistent with the forward-looking information
disclosed herein. In light of the significant uncertainties
inherent in forward-looking information, any such forward-looking
information should not be regarded as representations by us that
our objectives or plans relating to the rights offering or Tolnai
Purchase or otherwise will be achieved. Investors are cautioned not
to place undue reliance on any forward-looking information
contained herein and that such forward-looking information are
provided solely for the purpose of providing information about our
current expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. In addition, forward-looking information relates to the
date on which they are made.
We disclaim any intention or obligation to update or revise any
forward-looking information contained in this press release,
whether as a result of new information, future events or otherwise,
except to the extent required by law.
SOURCE Pinetree Capital Ltd.