Pinetree Capital Ltd. today announced that it is not proceeding with its public offering previously announced on Nov. 17, 2006.

Pinetree also announced that it has been advised by staff of the Ontario Securities Commission that it and Sheldon Inwentash, who is its chairman and CEO, are the subjects of investigations involving manipulative trading in securities of Treat Systems Inc. and Brownstone Ventures Inc. and insider trading.

Pinetree and certain of its principals are controlling shareholders of Treat and Brownstone.

In a statement, Pinetree said there have been no allegations and these investigations were not anticipated by either Inwentash or the ompany.

It added that Pinetree and Inwentash will cooperate with the OCC with a view to expeditiously resolving this in a positive manner.

Pinetree is a diversified investment and merchant banking firm focused on the small cap market. Pinetree’s investments are primarily in the resources sector.