Pinetree Capital Ltd. Acquires Common Shares Of
Bontan Corporation Inc.
March 31, 2006
TORONTO, Ontario (March 31, 2006) –
Pinetree Capital Ltd. (TSX: PNP), announces that on March 31, 2006, it acquired ownership of 2,000,000 common shares (“Common Shares”) of Bontan Corporation Inc. (“Bontan”) and 2,000,000 share purchase warrants (each, a “Warrant”) (each Warrant entitling the holder thereof to acquire one additional common share at an exercise price of US$0.35 until March 31, 2008). In the event that the Warrants are fully exercised, these holdings represent approximately 13.9% of the total issued and outstanding common shares of Bontan as of
March 31, 2006, calculated on a partially diluted basis assuming the exercise of Warrants only. As a result of this transaction, Pinetree and its joint actors held, as at
March 31, 2006, an aggregate of 3,612,000 common shares of Bontan and rights to acquire an aggregate of 2,000,000 common shares of Bontan upon exercise of the Warrants. Of these totals, Pinetree holds 3,112,000 common shares and the 2,000,000 Warrants directly. If Pinetree and its joint actors were to exercise all of the Warrants, their combined ownership would represent a total of 5,612,000 common shares of Bontan, or approximately 19.5% of such shares outstanding as of
March 31, 2006, calculated on a partially diluted basis assuming the exercise of the Warrants only. In the event that the Warrants are fully exercised, the direct holdings of Pinetree represent approximately 17.7% of all issued and outstanding common shares of Bontan as of
March 31, 2006, calculated on a partially diluted basis assuming the exercise of the Warrants only.
These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Bontan depending on market conditions or any other relevant factor.
Pinetree Capital Ltd. ("Pinetree" or the "Company"), which is publicly traded on the Toronto Stock Exchange (“TSX”) under the symbol “PNP”, is a diversified investment, financial advisory and merchant banking firm focused on the small cap market. Pinetree’s investments are primarily in the resources sector: Oil & Gas, Uranium, Precious Metals and Base Metals.
Pinetree’s investment approach is to build a macro position in a sector, find the micro-cap opportunities in that sector and work with those companies to build them to commercial production and create an exit.
For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Pinetree’s results to differ materially from expectations. These include risks relating to market fluctuations, investee performance and other risks. These forward-looking statements speak only as of the date hereof. Pinetree disclaims any intent or obligation to update these forward-looking statements.
Investor Relations Contact for Pinetree Capital Ltd.:
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.
130 King Street West, Suite 2810
Canada, M5X 1A9
Email: firstname.lastname@example.org Web Site: www.pinetreecapital.com