TORONTO, ON / ACCESSWIRE / May 3, 2021 / Pinetree Capital Ltd. (TSX:PNP) ("Pinetree" or the "Company") today announced its financial results for the three months ended March 31, 2021. All financial information provided in this press release is unaudited and all figures are in $'000 except per share amounts and shares outstanding.
Unaudited financial results for the period ended March 31, 2021:
The following information should be read in conjunction with our annual audited Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards ("IFRS") and our annual Management Discussion and Analysis for the year ended December 31, 2020, which can be found on SEDAR at www.sedar.com.
Selected Financial Information:
As at March 31, 2021 | As at December 31, 2020 | |
Total assets | $ 22,247 | $ 19,484 |
Total liabilities | 343 | 383 |
Book Value | 21,904 | 19,101 |
Shares outstanding | 9,420,198 | 9,045,198 |
Book Value per share (BVPS) | $2.33 | $2.11 |
Shares Outstanding | Book Value (BV)1 | OpEx1 | Book Value | Quarterly OpEx as | |
$'000s | $'000s | $ | % | ||
Mar-31-21 | 9,420,198 | 21,904 | 165 | 2.33 | 0.7 |
Dec-31-20 | 9,045,198 | 19,101 | 109 | 2.11 | 0.6 |
Sep-30-20 | 9,045,198 | 16,493 | 106 | 1.82 | 0.6 |
Jun-30-20 | 9,045,198 | 15,399 | 121 | 1.70 | 0.8 |
Mar-31-20 | 9,045,198 | 15,540 | 117 | 1.72 | 0.8 |
Dec-31-19 | 9,045,198 | 17,898 | 155 | 1.98 | 0.9 |
Sep-30-19 | 9,045,198 | 17,295 | 80 | 1.91 | 0.5 |
Jun-30-19 | 9,045,198 | 17,350 | 118 | 1.92 | 0.7 |
1 Refer to "Use of Non-IFRS Financial Measures"
Shares Outstanding and Book Value amounts are as at the Quarter End date
Operating Expenses amounts are for the Three months ending the Quarter End date
2 Operating Expenses do not include Foreign Exchange gain (loss) on financial assets other than investments
As at March 31, 2021, Pinetree's BVPS was $2.33 as compared to $2.11 as at December 31, 2020, representing an increase of $0.22 or 10%. The increase was primarily due to the increase in stock prices of investments held in Pinetree's portfolio.
As at March 31, 2021, the Company held investments at fair value totaling $20,349, which represented 93% of book value. This compares to investments at fair value of $16,493 representing 86% of book value as at December 31, 2020.
During the period ended March 31, 2021, the Company continued to take a disciplined approach to capital allocation and OpEx control. OpEx for the twelve months ended March 31, 2021 was $501 which corresponds to 2.3% of book value as at March 31, 2021. This compares to OpEx of $470 for the twelve months ended March 31, 2020 which corresponds to 3.0% of book value as at March 31, 2020. Since expenses fluctuate from quarter to quarter, management monitors costs on a trailing twelve month basis.
On March 10, 2021 the Company closed a non-brokered private placement of 375,000 common shares at a price of $2.00 per share, for aggregate gross proceeds of $750 to Mr. Shezad Okhai. As of April 19th Mr. Okhai has joined Pinetree as an Investment Manager.
Three months ended | ||
2021 | 2020 | |
Net investment gains (losses) | $ 2,202 | $ (2,388) |
Other income | 69 | 91 |
Total expenses | (217) | (61) |
Net income (loss) for the period | 2,053 | (2,358) |
Earnings (loss) per share - basic & fully diluted | 0.22 | (0.26) |
The net investment gains for the three months ended March 31, 2021 were $2,202 (three months ended March 31, 2020 - losses of $2,388) as a result of net realized gains on investments and the net change in unrealized gains.
For the three months ended March 31, 2021, other income totalled $69 as compared to other income of $91 for the three months ended March 31, 2020. Other income is comprised of interest and dividend income.
Capital Update
On April 6, 2021 the Company issued rights to holders of its common shares on the basis of one right for each common share held. Each right entitles the holder to subscribe for one common share of Pinetree upon payment of the subscription price of $1.85 per common share. The rights began trading on the TSX under the symbol PNP.RT on April 13, 2021 and will cease trading at noon on May 13, 2021. Rights will be exercisable until 5:00 pm on May 13, 2021, after which time unexercised rights will be void and of no value. Shareholders who fully exercise their rights will be entitled to subscribe pro rata for additional common shares, if available as a result of unexercised rights prior to the expiry.
There are currently 9,420,198 outstanding common shares. If all the rights issued under the offering are validly exercised, the Company will raise gross proceeds of approximately $17,427. Insiders of Pinetree intend to subscribe for a minimum of 5,270,165 common shares. This means the Company expects minimum gross proceeds of approximately $9,750.
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 results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance 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.
Non-IFRS Measures, Non-GAAP Measures
BVPS (book value per share) is a non-IFRS (international financial reporting standards) measure calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term BVPS does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies. There is no comparable IFRS measure presented in Pinetree's consolidated financial statements and thus no applicable quantitative reconciliation for such non-IFRS financial measure. The Company has calculated BVPS consistently for many years and believes that BVPS can provide information useful to its shareholders in understanding its performance and may assist in the evaluation of its business relative to that of its peers.
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".
For further information:
John Bouffard
Chief Financial Officer
416-941-9600 x 200
jbouffard@pinetreecapital.com
www.pinetreecapital.com
SOURCE: Pinetree Capital Ltd.
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