Pinetree Capital Ltd. Acquires Securities Of
Arctic Star Diamond Corp.
August 26, 2008
TORONTO, Ontario (August 26, 2008) –
Pinetree Capital Ltd. (TSX: PNP), announces that on August 22, 2008, it acquired ownership of 2,500,000 common shares (“Common Shares”) of Arctic Star Diamond Corp. (“Arctic Star”) and 2,500,000 common share purchase warrants (the “Warrants”). Each Warrant entitles the holder thereof to acquire one additional common share until August 22, 2010, at a price of $0.15. In the event that the Warrants are fully exercised, these holdings represent approximately 2.9% of the total issued and outstanding common shares of Arctic Star as of August 22, 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 held, as at August 22, 2008, an aggregate of 18,064,091 common shares of Arctic Star, including the Common Shares, and convertible securities exercisable into 14,509,091 common shares of Arctic Star (the “Convertible Securities”), including the Warrants. Of these totals, Pinetree directly holds 12,564,091 common shares and convertible securities exercisable into 7,509,091 common shares, including the Warrants (the “Pinetree Convertible Securities”) directly. If Pinetree and its joint actors were to exercise all of the Convertible Securities, their combined ownership would represent a total of 32,573,182 common shares of Arctic Star or approximately 17.4% of such shares outstanding as of August 22 2008, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. If Pinetree were to exercise all of the Pinetree Convertible Securities, its direct ownership would represent a total of 20,073,182 common shares of Arctic Star, or approximately 11.2% of such shares outstanding as of August 22, 2008, calculated on a partially diluted basis assuming the exercise of the Pinetree Convertible Securities only.
These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in Arctic Star depending on market conditions or any other relevant factor.
Pinetree Capital Ltd. ("Pinetree") was incorporated under the laws of the
Ontario and its shares are publicly traded on the Toronto Stock Exchange 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 following resources sectors: Uranium, Oil & Gas, Molybdenum, Precious Metals, Potash and Rare Earths, and Base Metals. Pinetree’s investment approach is to build a macro position in a sector, find the micro-cap opportunities within 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
130 King Street West, Suite 2500
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.
Toronto, Ontario, Canada, M5X 1A9
Web Site: www.pinetreecapital.com