Warrant Offering Raises $48.6 Million

TORONTO, Dec. 1 /CNW/ - Middlefield Group, on behalf of Pathfinder Convertible Debenture Fund ("Pathfinder" or the "Fund") is pleased to announce that pursuant to the exercise of Warrants it has raised total gross proceeds of $48.6 million under its Warrant Offering which expired November 30, 2010. 

Units issued pursuant to this Warrant Offering will participate in distributions declared by the Fund commencing with the distribution declared to Unitholders of record as at November 30, 2010.

The net proceeds of the Warrant Offering will be invested by the Fund in accordance with its investment objectives.

The Fund is exposed to an actively managed diversified portfolio comprised primarily of convertible debentures of Canadian issuers. Middlefield Capital Corporation, the Advisor, believes that convertible debentures represent an appealing investment opportunity, providing:

• high levels of stable current income and attractive yields to maturity;
• additional stability and safety of a senior security position relative to an investment in equities, income trust securities or preferred securities; and
• the potential for common equity-like returns.

As at October 31, 2010, the Fund has generated a total annualized return of 17% since inception on November 20, 2009.

The Fund's Units trade on the Toronto Stock Exchange under the symbol PCD.UN.

This press release contains forward-looking information. The forward-looking information contained in this press release is based on historical information concerning the coupon payments, distributions and dividends paid on the securities of issuers to which the Fund is exposed. Actual future results, including the amount of distributions paid by the Fund, may differ from the monthly distribution amount. Specifically, the income from which distributions are paid may vary significantly due to: changes in portfolio composition; changes in coupon payments, distributions and dividends paid by issuers of securities to which the Fund is exposed from time to time; there being no assurance that those issuers will pay distributions or dividends on their securities; the declaration of distributions and dividends by issuers of securities to which the Fund is exposed will generally depend upon various factors, including the financial condition of each issuer and general economic and stock market conditions; the level of borrowing by the Fund; and the uncertainty of realizing capital gains.  The risks, uncertainties and other factors that could influence actual results are described under "Risk Factors" in the Fund's prospectus dated October 28, 2009 and other documents filed by the Fund with the Canadian securities regulatory authorities. The forward-looking information contained in this press release constitutes the Fund's current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund's estimate as of any date other than the date of this press release.

For further information:

please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or at 1.888.890.1868