Pinnacle Renewable Holdings Inc. Files Final Prospectus and Announces Pricing of Initial Public Offering

/NOT FOR DISTRIBUTION IN THE UNITED STATES/

VANCOUVER, Jan. 30, 2018 /CNW/ - Pinnacle Renewable Holdings Inc. ("Pinnacle") today announced that it has obtained a receipt for its final prospectus filed with the securities regulatory authorities in each of the provinces and territories of Canada and has entered into an underwriting agreement (the "Underwriting Agreement") for the initial public offering and secondary offering of its common shares (the "Offering"). The Offering will include a treasury offering by Pinnacle and a secondary offering by certain existing shareholders (the "Selling Shareholders"). Pursuant to the Underwriting Agreement, Pinnacle and the Selling Shareholders have agreed to sell an aggregate of 13,335,000 common shares at a price of $11.25 per share. Pinnacle will sell 6,223,889 common shares for total gross proceeds of $70,018,750, and the Selling Shareholders will sell 7,111,111 common shares for total gross proceeds of $80,000,000. Pinnacle will not receive any proceeds from the secondary offering by the Selling Shareholders.

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

The underwriters have also been granted an over-allotment option (the "Over-Allotment Option") to purchase up to an additional 2,000,250 common shares from certain of the Selling Shareholders at a price of $11.25 per share for additional gross proceeds of approximately $22,502,810 if the Over-Allotment Option is exercised in full. The Over-Allotment Option can be exercised for a period of 30 days from the closing date.

The closing of the Offering is expected to occur on February 6, 2018, subject to customary closing conditions, at which time the common shares will commence trading on the Toronto Stock Exchange (the "TSX") under the symbol "PL". The TSX has conditionally approved the listing of the common shares, subject to fulfilling customary TSX requirements. A copy of the final prospectus is available on SEDAR at www.sedar.com.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The common shares 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 common shares 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. We produce 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. We are a trusted supplier to our customers, who require reliable, high quality fuel supply to maximize utilization of their facilities. We operate six industrial wood pellet production facilities, a port terminal, and have new production facilities under development in Entwistle, Alberta and Smithers, B.C. Pinnacle has entered into long-term take-or-pay contracts with utilities in the UK, Europe and Asia that represent 100% of our production capacity through 2021 and nearly 80% of our production capacity through 2026.

SOURCE Pinnacle Renewable Holdings Inc.

Andrea Johnston, Chief Financial Officer, 604-270-9613, [email protected]