Pinnacle (PNI) raises money, shares slide
PNI -5.6%: back trading today after raising $105m to take a stake in a Private Equity fund manager. The raise was done at $16.70/sh, what was a 4.6% discount to the previous close however the market made light work of that price this morning, selling the stock down to sub-$15 before staging a recovery. The raise will go towards a $75m stake in Five V which targets small to midsized growth companies. The investment is new money for Five V, with no shareholder sell down, however the same cannot be said for the PNI raise. Executive Director Adrian Whittingham has taken $14.6m off the table in the placement – Adrian signaled intentions to reduce his role at the company last year before having a change of heart, perhaps he’s going back on his word again. The selldown certainly spooked the market today.