Pinetree Capital Ltd. (TSX: PNP) intends to close a rights offering for gross proceeds of up to approximately $9.3 million.
Pinetree Capital will be issuing rights to holders of its common shares of record as at the close of business on May 19, 2017. Each holder of common shares as at the record date and who is a resident of a province or territory of Canada will receive one transferable right for each common share held. Each right will entitle the holder to subscribe for one share at a price of $2.10 per share.
A maximum of 4,522,599 common shares will be issued pursuant to the offering, representing 100% of the currently issued and outstanding common shares. If all of the rights issued under this rights offering are validly exercised, the rights offering will raise gross proceeds of approximately $9.3 million,
The rights will be listed for trading on the TSX on a “when issued” basis under the symbol PNP.RT commencing at the opening of business on May 17, 2017. Trading of the rights will cease at 12:00 p.m. (Toronto time) on June 22, 2017 and the rights will be exercisable until 5:00 p.m. (Toronto time) on such date. After such time, any unexercised Rights will be void and of no value. Holders who fully exercise their rights under the basic subscription privilege will be entitled to subscribe for additional common shares, if available as a result of any unexercised rights on the expiry date, subject to certain limitations.
There is no standby commitment in respect of the rights offering and the completion of the rights offering is not subject to Pinetree receiving any minimum amount of subscriptions from holders.
2507492 Ontario Ltd., a corporation controlled by Peter Tolnai, Pinetree’s Chairman and Chief Executive Officer, intends to participate in the rights offering through the basic subscription privilege and, to the extent applicable, the additional subscription privilege. Shares to be subscribed by 2507492 Ontario will not result in 2507492 Ontario beneficially owning more than 45% of Pinetree’s issued and outstanding common shares upon closing of the rights offering.
Tolnai, currently beneficially owns, directly or indirectly, 1,412,202 common shares, representing approximately 31% of the issued and outstanding common shares.
Net proceeds of which will be used by Pinetree to fund the acquisition of additional portfolio investments.