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News Release - June 26, 2018Pinnacle Renewable Holdings Inc. and ONCAP complete $57.6 million secondary offering of common shares including exercise of over-allotment option in full

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, June 26, 2018 /CNW/ - Pinnacle Renewable Holdings Inc. (TSX: PL) ("Pinnacle") and the ONCAP Entities (defined below) announced today the closing of a previously announced secondary offering (the "Offering") by ONCAP II L.P., ONCAP (US) II L.P., ONCAP (US) II-A L.P., Onex Parallel Investment (ONCAP) L.P., Biomass EI Ltd. (collectively, the "ONCAP Entities"), Jim Swaan Holdings Inc. and Rob Swaan Holdings Inc. (collectively with the ONCAP Entities, the "Selling Shareholders") of an aggregate of 4,186,000 common shares of Pinnacle at a price of $13.75 per common share for total gross proceeds of $57,557,500. The Offering includes 546,000 common shares which were sold to the Underwriters by the Selling Shareholders upon the exercise in full of an over-allotment option granted to the Underwriters by the Selling Shareholders. Pinnacle did not receive any proceeds from the Offering.

The Offering was co-led by CIBC Capital Markets and RBC Capital Markets, together with Scotiabank and BMO Capital Markets, as joint bookrunners, and National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd. and HSBC Securities (Canada) Inc.

Immediately prior to the closing of the Offering, the ONCAP Entities, collectively, owned or controlled (directly or indirectly) an aggregate of 14,112,787 common shares, representing approximately 42.8% of Pinnacle's issued and outstanding common shares. Immediately following the closing of the Offering, the ONCAP Entities, collectively, own or control (directly or indirectly) approximately 31.6% of the issued and outstanding common shares. As required by early warning reporting requirements, the ONCAP Entities have disclosed that the common shares sold pursuant to the Offering were disposed of as a result of investment considerations, including price, market conditions, availability of funds, evaluation of alternative investments and other factors.  

For further information and to obtain a copy of the early warning report to be filed under applicable Canadian securities laws in connection with the foregoing matters, please see Pinnacle's profile on SEDAR at www.sedar.com.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws. Accordingly, the Securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Pinnacle in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Pinnacle

Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. Pinnacle produces renewable fuel for electricity generation in the form of industrial wood pellets, which are used by global utilities and large-scale power generators to produce renewable and reliable baseload power. Pinnacle is a trusted supplier to its customers, who require reliable, high quality fuel supply to maximize utilization of their facilities. Pinnacle takes pride in its industry leading safety practices. Pinnacle operates seven industrial wood pellet production facilities, a port terminal in Prince Rupert, B.C., and currently has a new production facility under construction in Smithers, B.C. Pinnacle has entered into long-term take-or-pay contracts with utilities in the U.K., Europe and Asia that represent 104% of its production capacity through 2021 and nearly 87% of its production capacity through 2026.

SOURCE Pinnacle Renewable Holdings Inc.

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Pinnacle currently operates seven wood pellet production facilities throughout western Canada, and one production facility in Alabama. Pinnacle’s Canadian production facilities are all located on major rail lines allowing for efficient rail transport to one of two ocean shipping terminals on the B.C. coast: Pinnacle’s wholly-owned Westview terminal in Prince Rupert, and the Fibreco Terminal at the Port of Vancouver. The Alabama production facility utilizes inland waterways to cost-effectively transport pellets for ocean shipping via the Port of Mobile on the U.S. Gulf Coast.

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