Pinetree Capital Ltd. Acquires Securities Of Mega Silver Inc.
January 31, 2008
TORONTO, Ontario (January 31, 2008) – Pinetree Capital Ltd. (TSX: PNP), announces that on January 30, 2008, further to the conversion of certain subscription receipts, it acquired ownership of 750,000 common shares (“Common Shares”) of Mega Silver Inc. (“Mega Silver”) and 375,000 common share purchase warrants (the “Warrants”). Each Warrant entitles the holder thereof to acquire one additional common share at a price of $1.50 until November 6, 2009. In the event that the Warrants are fully exercised, these holdings represent approximately 3.7% of the total issued and outstanding common shares of Mega Silver as of January 30, 2008, calculated on a partially diluted basis assuming the exercise of the Warrants only. As a result of this transaction, Pinetree and its joint actors collectively held, as at January 30, 2008, an aggregate of 5,536,331 common shares of Mega Silver and rights to acquire an additional 1,337,500 common shares of Mega Silver upon the exercise of convertible securities (collectively, the “Convertible Securities”). Of these totals, Pinetree owns an aggregate of 3,940,536 common shares, including the Common Shares, and the Warrants, directly. In the event that the Convertible Securities are fully exercised, the holdings of Pinetree and its joint actors represents a total of 6,873,831 common shares of Mega Silver, or approximately 22.2% of all issued and outstanding common shares as at January 30, 2008, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. In the event that only the Warrants are fully exercised, Pinetree’s direct holdings would represent approximately 14.4% of all issued and outstanding common shares of Mega Silver as of January 30, 2008, calculated on a partially diluted basis assuming the exercise of the Warrants only.
These transactions were made for investment purposes and Pinetree could increase or decrease its investment in Mega Silver depending on market conditions or any other relevant factor.
Pinetree Capital Ltd. ("Pinetree" or the "Company") was incorporated under the laws of the Province of Ontario and is publicly traded on the Toronto Stock Exchange (“TSX”) under the symbol “PNP”. Pinetree is a diversified investment and merchant banking firm focused on the small cap market. Pinetree’s investments are primarily in the resources sector: Uranium, Oil & Gas, Molybdenum, 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.