TSX: PNP     Last: 3.67     Change: -0.14
TSX: PNP     Last: 3.67     Change: -0.14

Pinetree Capital Announces Cure Of Convertible Debenture Covenant Default

August 21, 2013

Toronto, Canada (August 21, 2013) – Pinetree Capital Ltd. (“Pinetree”) (TSX: PNP, PNP.DB) announces that it has cured the previously-announced default of one of its debt maintenance covenants contained in the convertible debenture indenture governing its 8.0% convertible unsecured subordinated debentures due May 31, 2016 (the “Debentures”).  As at August 16, 2013, the aggregate amount of the company’s debt was less than 33% of the aggregate value of its total consolidated assets, as reflected on its balance sheet as at that date.  Pinetree has also advised the trustee under the convertible debenture indenture of its cure.

Even though Pinetree has cured its default, it intends to proceed with the extraordinary meeting of holders of the Debentures to be held on September 12, 2013, for the purpose of approving certain amendments to the Debentures, including an amendment to temporarily increase the debt-to-assets ratio threshold to 50% from the current 33% limit, for a period of 9 months.  If the proposed amendments are approved at the meeting, or in writing in advance of the meeting, holders of Debentures who vote in favour of the amendments will be entitled to receive payment of a consent fee from the company.  Debenture holders should refer to the materials mailed to them this week in respect of the meeting (and available at www.sedar.com under Pinetree’s corporate profile) for details of the proposed amendments and procedures in respect of voting and payment of the consent fee. 

About Pinetree

Pinetree was incorporated under the laws of the Province of Ontario and its shares are publicly-traded on the Toronto Stock Exchange under the symbol “PNP”. Pinetree is a diversified investment and venture capital firm focused on the small cap market.  Pinetree’s investments are primarily in the resources sector: Precious Metals, Base Metals, Oil and Gas, Potash, Lithium and Rare Earths, Uranium and Coal.  Pinetree’s investment approach is to develop a macro view of a sector, build a position consistent with the view by identifying micro-cap opportunities within that sector, and devise an exit strategy designed to maximize our relative return in light of changing fundamentals and opportunities. Pinetree is recognized as a value-added partner in the resource industry.

Sheldon Inwentash, CPA, CA.                                       
Chairman & CEO                                                          
Pinetree Capital Ltd.                                                     
130 King Street West, Suite 2500

Gerry Feldman, CPA, CA.                                             
CFO & Vice President, Corporate Development            
Pinetree Capital Ltd.                                                     
Phone: 416-643-3884                                                    
Email: feldman@pinetreecapital.com     

Investor Relations:
Richard Patricio, LL.B.
Vice President, Legal and Corporate Affairs
Pinetree Capital Ltd.
Toronto, Ontario, Canada, M5X 2A2
Phone: 416-941-9600
Email: ir@pinetreecapital.com
Website: www.pinetreecapital.com


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