TORONTO, ONTARIO--(Marketwired - Feb. 16, 2017) - Pinetree Capital Ltd. (TSX:PNP) ("Pinetree" or the "Company") today announced its financial results for the fiscal year ended December 31, 2016. All financial information provided in this press release is unaudited and all figures are in $'000 except per share amounts and shares outstanding.
Financial results for the three and twelve months ended December 31, 2016
The following information should be read in conjunction with the Company's annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards ("IFRS") and our annual Management Discussion and Analysis for the year ended December 31, 2016, which can be found on SEDAR at www.sedar.com.
Selected Financial Information
|Three months ended||Twelve months ended|
|Dec. 31, 2016||Dec. 31, 2015||Dec. 31, 2016||Dec. 31, 2015|
|Net investment (loss)||(554||)||(4,532||)||(11,728||)||(22,526||)|
|Total (loss) for the period||(844||)||(5,922||)||(15,107||)||(32,215||)|
|(Loss) per share - basic & fully diluted||(0.22||)||(2.93||)||(4.00||)||(15.95||)|
|As at Dec. 31, 2016||As at Dec. 31, 2015|
|Net asset value||10,649||19,502|
|Net asset value per share - basicc||$||2.35||$||9.66|
|c Refer to Non-IFRS Measures section of this press release|
The net investment loss for the three months ended December 31, 2016 was $554 (three months ended December 31, 2015 - $4,532) as a result of net realized losses of $2,559 plus a net change in unrealized gains of $2,006 on investments.
For the three months ended December 31, 2016, the Company had a net change in unrealized gain on investments of $2,006 as compared to a net change in unrealized loss of $8,294 for the three months ended December 31, 2015.
The net investment loss for the year ended December 31, 2016 was $11,728 (year ended December 31, 2015 - net investment loss of $22,526) as a result of net realized losses plus a net change in unrealized (losses) gains on investments.
For the year ended December 31, 2016, the Company recorded net realized losses on disposal of investments of $17,519, as compared to $53,059 for the year ended December 31, 2015.
For the year ended December 31, 2016, the Company had a net change in unrealized gain on investments of $5,791 as compared to a net change in unrealized gain of $30,533 for the year months ended December 31, 2015.
As at December 31, 2016, the Company held investments at fair value totaling $6,695 as compared to $27,864 as at December 31, 2015, a 76% decrease, attributable to two factors: (a) in order to generate cash to fund operations and repay the Debentures, the Company undertook dispositions of investments which generated cash proceeds of $11,241 during the year ended December 31, 2016; and (b) management's estimates of the fair values of the remaining investments in private companies based on the facts and circumstances which existed at December 31, 2016.
In order for the Company to complete additional portfolio investments, it will require additional equity and/or debt capital. Accordingly, the Company intends to complete one or more equity and/or debt financing transactions during the next 12 to 24 months. Such financing transactions, if consummated, are most likely to be completed on a prospectus-exempt basis.
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
NAV (net asset 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 NAV 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 NAV consistently for many years and believes that NAV 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 diversified investment and merchant banking firm focused on the small cap market, with early stage investments in technology, resource and biotechnology companies. Pinetree's common shares are listed on the Toronto Stock Exchange (TSX) under the symbol "PNP".
Chief Executive Officer