Pinetree Capital Ltd. Announces Appointment of a New Investment Manager and Related Private Placement of Common Shares
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TORONTO, ONTARIO (March 5, 2021) – Pinetree Capital Ltd. (TSX:PNP) (“Pinetree” or the “Company”) is pleased to announce that Mr. Shezad Okhai will be joining the Company as an Investment Manager in April of 2021. Mr. Okhai has worked as a Vice President at Volaris Group for the past 10 years and is an experienced public equities investor in the technology sector.
Pinetree also announced today that it entered into an agreement with Mr. Okhai to effect a non-brokered private placement (the “Offering”) pursuant to which the Company will issue 375,000 common shares of the Company to Mr. Okhai at a price of $2.00 per common share, for aggregate gross proceeds to the Company of $750,000. The Offering price represents an approximate 4.5% discount to the 5-day volume weighted average trading price of Pinetree’s common shares traded on the TSX. The Company intends to use the net proceeds from the Offering for general corporate purposes, including to make additional investments.
Upon closing of the Offering, Mr. Okhai is expected to beneficially own approximately 4.0% of Pinetree’s outstanding common shares, representing a strong alignment of interests between Pinetree’s management team and its shareholders.
The closing of the Offering is expected to occur on or about March 10, 2021 and is subject to receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange.
“On behalf of the board of directors, I want to welcome Shezad to the Pinetree team,” said Damien Leonard, Chairman of Pinetree. “We look forward to working with him to help drive Pinetree’s future growth and build on the existing investment principles and process.”
The common shares issued in connection with the Offering will be subject to a four month and one day restricted period from their date of issuance in accordance with applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, and these securities will not be offered or sold in any jurisdiction in which their offer or sale would be unlawful.
Forward Looking Statements
Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Pinetree or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and are made as of the date hereof and Pinetree assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances. Accordingly, when relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to closing of the Offering and the intended use of proceeds therefrom.
About Pinetree Capital Ltd.
Pinetree is a value-oriented investment and merchant banking company focused on the technology sector. Pinetree’s common shares are listed on the TSX under the symbol “PNP”.