TORONTO, ON / ACCESSWIRE / August 6, 2021 / Pinetree Capital Ltd. (TSX:PNP) ('Pinetree' or the 'Company') today announced its financial results for the three and six months ended June 30, 2021. All financial information provided in this press release is unaudited and all figures are in $'000 except per share amounts and shares outstanding. The information below does not account for the 100:1 consolidation and 1:50 share split of the common shares which occurred on July 12, 2021.
Unaudited financial results for the period ended June 30, 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 June 30, 2021 | As at December 31, 2020 | |||||
Total assets | $ | 39,865 | $ | 19,484 | ||
Total liabilities | 385 | 383 | ||||
Book Value | 39,480 | 19,101 | ||||
Shares outstanding | 18,840,396 | 9,045,198 | ||||
Book Value per share (BVPS) | $ | 2.10 | $ | 2.11 | ||
| Shares Outstanding | Book Value (BV)1 | OpEx1 (excluding F/X gain/loss)2 | Book Value per share - (BVPS)1 | Quarterly OpEx as percentage BV1 | |||||||
| $'000s | $'000s | $ | % | ||||||||
Jun-30-21 | 18,840,396 | 39,480 | 231 | 2.10 | 0.6 | ||||||
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 | ||||||
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 June 30, 2021, Pinetree's BVPS was $2.10 as compared to $2.11 as at December 31, 2020, representing a decrease of $0.01 or 0.5%. This represented a sequential decrease of $0.23 or 10% from $2.33 as of March 31. The decline was primarily due to the dilutive effects of the financing which occurred in the quarter as described below. Excluding the effects of the financing, Pinetree's BVPS would have been approximately $2.34. As a reminder, Pinetree completed a 100:1 consolidation and 1:50 split after the end of the reporting period, on July 12, 2021, which has not been reflected in the above information.
As at June 30, 2021, the Company held investments at fair value totaling $22,821, which represented 58% of book value. This compares to investments at fair value of $16,493 representing 86% of book value as at December 31, 2020
On March 29, 2021 the Company announced a rights offering to holders of its common shares. Each right entitled the holder to subscribe for one common share of Pinetree upon payment of the subscription price of $1.85 per common share. The offering was significantly oversubscribed. At the close on May 17th, shareholders exercised 9,420,198 rights for 9,420,198 common shares of Pinetree. This resulted in net proceeds of $17,298 after transaction costs of approximately $129. Insiders, as a group, subscribed for and received an aggregate of 4,808,576 common shares. All other rights holders, as a group, subscribed for and received an aggregate of 4,661,622 common shares
During the period ended June 30, 2021, the Company continued to take a disciplined approach to capital allocation and OpEx control. OpEx for the twelve months ended June 30, 2021 were $611 which corresponds to 1.5% of book value as at June 30, 2021. This compares to OpEx of $473 for the twelve months ended June 30, 2020 which corresponds to 3.1% of book value as at June 30, 2020. Since expenses fluctuate from quarter to quarter, management monitors costs on a trailing twelve month basis.
| Three months ended June 30, | Six months ended June 30, | ||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||
Net investment gains (losses) | 397 | (72 | ) | 2,599 | (2,460 | ) | |||
Other income | 97 | 71 | 166 | 162 | |||||
Total expenses | 216 | 136 | 434 | 182 | |||||
Net income (loss) | 278 | (137 | ) | 2,331 | (2,499 | ) | |||
Earnings (loss) per share - basic & fully diluted | 0.01 | (0.02 | ) | 0.12 | (0.28 | ) | |||
The net investment gains for the three months ended June 30, 2021 were $397 (three months ended June 30, 2020 - losses of $72) as a result of net realized gains on investments and the net change in unrealized gains.
For the three months ended June 30, 2021, other income totalled $97 as compared to other income of $71 for the three months ended June 30, 2020. Other income is comprised of interest and dividend income.
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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