Pender Growth Fund Provides Financial Highlights and Company Updates

May 26, 2023 | blog

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VANCOUVER, British Columbia, May 26, 2023 (GLOBE NEWSWIRE) — (TSXV: PTF) Pender Growth Fund Inc. (the “Company”) at this time introduced its monetary and operational outcomes for the three months ended March 31, 2023.

Financial Highlights (Unaudited)

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  • Net loss was $3,293,058 for the three months ended March 31, 2023 (March 31, 2022 – Net loss $51,821,705) primarily the results of damaging funding efficiency within the quarter.
  • Net loss per Share for the three months ended March 31, 2023 was $0.44 (March 31, 2022 – Net loss $6.81).
  • Shareholders’ fairness per Class C widespread share (“Share”) was $8.85 as at March 31, 2023 (December 31, 2022 – $9.28).

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  • The Company’s complete shareholders’ fairness was $66.8 million as at March 31, 2023, a lower from December 31, 2022 ($70.2 million) ensuing primarily from damaging funding efficiency in the course of the interval.
  • Shares excellent have been 7,553,629 as at March 31, 2023, a lower from December 31, 2022 (7,569,929) because of share repurchases underneath the Company’s Normal Course Issuer Bid (“NCIB”), which was renewed on February 14, 2023.
  • At March 31, 2023, 84.6% of the funding portfolio was made up of personal corporations and 15.4% of public corporations. However, taken along with the Company’s oblique publicity to public corporations via its funding in Pender Private Investments Inc. (“PPI”) and Pender Technology Inflection Fund II Limited Partnership (“PTIF II”) , public corporations make up 74.1% of the Company’s holdings.
  • Management Expense Ratio (“MER”) excluding efficiency charges was 2.44% for the quarter ended March 31, 2023, up 0.49% in comparison with 1.95% within the first quarter of 2022.

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(Based on Shareholders’ Equity)

3 Month 1 Year 3 Year 5 Year Since
Class C -4.7% -54.1% 29.4% 14.8% 18.3%

The Company’s portfolio is materially concentrated within the shares of 1 publicly listed Portfolio Company, Copperleaf Technologies Inc. (“Copperleaf”). At March 31, 2023, contemplating each its direct funding and its oblique funding via its holding of shares of PPI, the Company held 6,762,065 shares of Copperleaf with a price of $37.2 million, which was 55.7% of the Company’s complete shareholders’ fairness of $66.8 million (December 31, 2022 – 6,762,065 Shares with a price of $38.8 million which was 55.3% of the Company’s complete shareholders’ fairness of $70.2 million).

As at March 31, 2023, Copperleaf’s buying and selling value was at $5.50 per share, down $0.24 per share from its December 31, 2022 closing value of $5.74 per share. This lower resulted within the unrealized loss that was considered one of most important components within the lower of the Company’s complete shareholders’ fairness to $66.8 million ($8.85 per share) at March 31, 2023. There might be no assurance that the Company will be capable of notice the worth of this funding.

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Portfolio Highlights

The first quarter of 2023 noticed a continuation of the market challenges that began in early 2022. Geopolitical uncertainty, elevated inflation and rising rates of interest have all contributed to a slower financial development outlook as we entered the yr. With the height in inflation possible behind us and central banks slowing and in some instances pausing their rate of interest elevating campaigns, the main focus has turned to development and the lag impact of tighter monetary situations. We consider that the Company continues to be well-positioned at this time to pursue its funding targets regardless of present market volatility and valuations in micro and small cap shares in North America.

The financial uncertainties round persistent inflation strain, financial institution failures, geopolitical occasions and the lingering COVID-19 pandemic proceed to impression the worldwide financial system. While macro occasions have pushed investor sentiment, we’ve remained targeted on our bottom-up elementary analysis to determine corporations that may thrive in a variety of financial situations. We consider that this surroundings offers compelling alternatives for long run targeted buyers and that the Company is well-positioned to proceed to pursue its funding targets.

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As at all times, this quarter we labored intently with our non-public portfolio corporations and sure of our public portfolio corporations.

Significant Equity Investments & Recent Developments

Pender Private Investments Inc.

At March 31, 2023, the Company held roughly 98% of the Legacy Shares of PPI, previously the Working Opportunity Fund (EVCC) Ltd. (“WOF”). These shares have been acquired in May 2021 from shareholders of WOF (“Exiting Shareholders”) underneath the beforehand introduced transaction (the “WOF Transaction”) and in transactions subsequent to May 2021.

On May 23, 2023, PTF and PPI signed a non-binding letter of intent for PTF to buy all of PPI’s Legacy Shares which can be held by the two% minority shareholders (the “Minority Shareholders”). It is proposed that PTF acquires the shares held by the Minority Shareholders underneath a plan of association, at a value equal to 100% of the NAV in impact 5 enterprise days earlier than the execution of the definitive settlement (the “Purchase Price”). The Purchase Price can be recalculated 5 enterprise days previous to the closing of the proposed transaction and can be adjusted up or right down to a most of 5 p.c based mostly on the up to date calculation. Completion of the proposed transaction stays topic to, amongst different issues, the negotiation of a definitive settlement, approval of the PPI shareholders (together with majority of the minority approval), receipt of a passable Fairness Opinion and courtroom approval. The proposed transaction is anticipated to shut in Q3 of 2023.

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Copperleaf Technologies Inc.

At March 31, 2023, the Company held 9.5% of Copperleaf’s issued and excellent shares, each immediately and thru its funding in PPI. The worth of the Company’s direct and oblique holdings of Copperleaf was $37.2 million at March 31, 2023, which was 55.7% of the Company’s complete shareholders’ fairness.

Other Highlights

We continued to amass shares of the Company out there underneath our NCIB as a result of we consider the shares are buying and selling at a reduction to their intrinsic worth. On February 14, 2023, the Company launched a brand new NCIB, underneath which the Company could buy a most of 663,045 shares, or 10% of the Company’s public float on launch date, in the course of the one-year interval ending February 13, 2024. 

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We encourage you to consult with the Company’s MD&A and quarterly unaudited monetary statements for March 31, 2023, the annual audited monetary statements for the year-ended December 31, 2022, and different disclosures obtainable underneath the Company’s profile at for added info.

About the Company

Pender Growth Fund Inc is an funding agency. Its funding goal is to realize long-term capital development. The Company makes use of its small capital base and long-term horizon to put money into distinctive conditions, primarily small cap, particular conditions, and illiquid private and non-private corporations. The agency invests in private and non-private corporations based mostly primarily in Canada and the U.S., principally within the know-how sector. It trades on the TSX Venture Exchange underneath the image “PTF” and posts its NAV on its web site, typically inside 5 enterprise days of every month finish.

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Please go to

For additional info, please contact:

Tony Rautava

Corporate Secretary
Pender Growth Fund Inc.
(604) 653-9625
Toll Free: (866) 377-4743
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that time period is outlined within the insurance policies of the TSX Venture Exchange) accepts duty for the adequacy or accuracy of this launch.

Forward-Looking Information

This information launch could include forward-looking statements (inside the that means of relevant securities legal guidelines) regarding the enterprise of the Company and the surroundings wherein it operates. Forward-looking statements are recognized by phrases corresponding to “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate” and different related expressions. These statements are based mostly on the Company’s expectations, estimates, forecasts and projections and embody, with out limitation, statements concerning the Company’s decreased portfolio threat and future funding alternatives. The forward-looking statements on this information launch are based mostly on sure assumptions; they don’t seem to be ensures of future efficiency and contain dangers and uncertainties which can be troublesome to manage or predict. Plenty of components may trigger precise outcomes to vary materially from the outcomes mentioned within the forward-looking statements, together with, however not restricted to, the components mentioned underneath the heading “Risk Factors” within the Company’s annual info kind obtainable at There might be no assurance that forward-looking statements will show to be correct as precise outcomes and outcomes could differ materially from these expressed in these forward-looking statements. Readers, due to this fact, shouldn’t place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this information launch and, besides as expressly required by relevant legislation, the Company assumes no obligation to publicly replace or revise any forward-looking assertion, whether or not because of new info, future occasions or in any other case. 


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