Pinetree Capital Ltd. has divested its stake in a private company for approximately $2 million due to deteriorating business prospects, resulting in a 5% decrease in its net asset value.

Target Information

Pinetree Capital Ltd. (TSX:PNP) has made a significant divestment by selling its entire stake in a private company, which represented 31% of its investment portfolio's fair market value as of September 30, 2016. This decision followed management's assessment that the business prospects of the target company had materially deteriorated, leading to the exploration of potential exit strategies.

The sale was completed on December 30, 2016, to a third-party buyer for approximately $2,000,000. While this transaction will impact Pinetree's net asset value (NAV) by reducing it by approximately $570,000, or 5% per share, the move is viewed as a practical step considering the target company's declining performance.

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