Pender Growth Fund Inc. (the “Company”) today announced its financial and operational results for the three months and nine months ended September 30, 2023.

Financial Highlights (Unaudited)

• Net loss was $97,003 for the three months ended September 30, 2023 (September 30, 2022 – Net loss $8,520,121) primarily the result of negative investment performance in the quarter
• Net loss per Class C common share (“Share”) for the three months ended September 30, 2023 was $0.01 (September 30, 2022 – Net loss per share $1.12).
• The Company’s total shareholders’ equity decreased by $253,874 for the three months ended September 30, 2023, primarily due to share repurchases of $156,871 under the Company’s Normal Course Issuer Bid (“NCIB”) and a net loss of $97,003, primarily the result of negative investment performance during the quarter.
• Shareholders’ equity per Share was $8.85 as at September 30, 2023 (December 31, 2022 – $9.28).
• The Company’s total shareholders’ equity was $66.6 million as at September 30, 2023, a decrease from December 31, 2022 ($70.2 million) resulting primarily from negative investment performance for the nine months ended September 30, 2023.
• Shares outstanding were 7,524,629 as at September 30, 2023, a decrease from December 31, 2022 (7,569,929) as a result of share repurchases under the NCIB, which was renewed on February 14, 2023.
• At September 30, 2023, 85.9% of the investment portfolio was made up of private companies and 14.1% of public companies. However, taken together with the Company’s indirect exposure to public companies through its investment in Pender Private Investments Inc. (“PPI”) and Pender Technology Inflection Fund II Limited Partnership (“PTIF II”) , public companies make up 68.8% of the Company’s holdings.
• Management Expense Ratio (“MER”) before performance fees was 2.45% for the quarter ended September 30, 2023, up 0.10% compared to 2.35% in the third quarter of 2022.

RENDEMENT

The Company’s portfolio is materially concentrated in the shares of one publicly listed Portfolio Company, Copperleaf Technologies Inc. (“Copperleaf”). At September 30, 2023, considering both its direct investment and its indirect investment through its holding of shares of PPI, the Company held 6,889,883 shares of Copperleaf with a value of $­­­38.9 million, which was 58.5% of the Company’s total shareholders’ equity of $66.6 million (December 31, 2022 – 6,762,065 Shares with a value of $38.8 million which was 55.3% of the Company’s total shareholders’ equity of $70.2 million). As at September 30, 2023, Copperleaf’s trading price was at $5.65 per share, down $0.09 per share from its December 31, 2022 closing price of $5.74 per share. There can be no assurance that the Company will be able to realize the value of this investment.

Faits saillants du portefeuille  
During the third quarter, overall market sentiment was more challenging, with equities and risk assets broadly lower over the period. With the peak in inflation nearing or behind us and central banks slowing and, in some cases, pausing, their interest rate raising campaigns, the focus has turned to apprehension about future economic growth and the lag effect of tighter financial monetary conditions brought about by higher interest rates. We think this will remain in focus with concern from investors that tighter financial conditions will impact spending habits and that a recession is on the horizon.

We believe that the Company continues to be well-positioned today to pursue its investment objectives despite current market volatility and valuations in micro and small cap stocks in North America.

Investment results may be affected by future developments and new information that may emerge about inflation and the impact of central bank measures and geopolitical and other global events, factors that are beyond the Company’s control.

While macro events have driven investor sentiment, we have remained focused on our bottom-up fundamental research to identify companies that can thrive in a wide range of economic scenarios.  We believe that this environment provides compelling opportunities for long term focused investors and that the Company is well-positioned to continue to pursue its investment objectives.

As always, this quarter we worked closely with our private portfolio companies and certain of our public portfolio companies.

Importantes participations au capital et événements récents
Pender Private Investments Inc.
At September 30, 2023, the Company held 100% of the Legacy Shares of PPI, formerly the Working Opportunity Fund (EVCC) Ltd. (“WOF”). These shares were acquired in May 2021 from shareholders of WOF (“Exiting Shareholders”) under the previously announced transaction (the “WOF Transaction”) and in transactions subsequent to May 2021.

During the period, after receiving approval from the PPI shareholders, a satisfactory Fairness Opinion and court approval, the  Company acquired the remaining 2% of PPI’s Legacy Shares at a purchase price $6.94 per Share for a total cash purchase price of $855,490, effective August 17, 2023.

Copperleaf Technologies Inc.
At September 30, 2023, the Company held 9.4% of Copperleaf’s issued and outstanding shares, both directly and through its investment in PPI. The value of the Company’s direct and indirect holdings of Copperleaf was $38.9 million at September 30, 2023, which was 58.5% of the Company’s total shareholders’ equity.

Autres faits saillants
Nous avons continué à acquérir des parts de la société sur le marché dans le cadre de notre OPRA, car nous estimons que les actions se négocient actuellement à un prix inférieur à leur valeur intrinsèque. Le 14 février 2023, la société a lancé une nouvelle OPRA nous donnant droit d’acheter, au cours de la période d’un an se terminant le 13 février 2024, un maximum de 663 045 actions, soit 10 % de notre capital flottant à la date de lancement. 

We encourage you to refer to the Company’s MD&A and quarterly unaudited financial statements for September 30, 2023, the annual audited financial statements for the year-ended December 31, 2022, and other disclosures available under the Company’s profile at www.sedarplus.ca for additional information.

À propos de la société
Pender Growth Fund Inc. est une société d’investissement. Son objectif consiste à réaliser une croissance du capital à long terme. La société se sert de son modeste capital de base et de sa vision à long terme pour investir dans des situations uniques, principalement des entreprises à petite capitalisation, des situations spéciales et des entreprises publiques et privées non liquides. La société investit dans des entreprises publiques et privées, principalement situées au Canada et aux États-Unis et issues, dans une large mesure, du secteur de la technologie. Elle se négocie sur la Bourse de croissance TSX sous le symbole « PTF » et affiche la valeur de son actif net sur son site Web, généralement dans les cinq jours suivant la fin de chaque mois.

Veuillez visiter www.pendergrowthfund.com.

Pour plus de renseignements, veuillez communiquer avec :

Tony Rautava
Secrétaire général
Pender Growth Fund Inc.
(604) 653-9625
Sans frais : (866) 377-4743

Ni la Bourse de croissance TSX ni son fournisseur de services de réglementation (tel que ce terme est défini dans les politiques de la Bourse de croissance TSX) n’acceptent de responsabilité quant à la pertinence ou à l’exactitude du présent communiqué de presse.

Renseignements sur les énoncés prospectifs
Ce communiqué de presse peut contenir des énoncés prospectifs (avec le sens qu’on leur accorde dans les lois sur les valeurs mobilières en vigueur) relatifs à la société et au contexte dans lequel elle exploite. Les énoncés prospectifs se reconnaissent habituellement à l’emploi de termes et expressions comme « croire », « prévoir », « anticiper », « avoir l’intention de », « estimer », « planifier » et « pouvoir », « évaluer » et de verbes au futur ou au conditionnel, et autres expressions comparables. Ces énoncés s’appuient sur les attentes, estimations, prévisions et projections de la société et comprennent, sans toutefois s’y limiter, les énoncés portant sur la diminution des risques des portefeuilles de la société, ainsi que leurs occasions de placement futures. Les énoncés prospectifs dans le présent communiqué de presse sont émis sur la base de certaines hypothèses : le rendement futur n’est pas garanti et suppose des risques et des incertitudes qui sont difficiles à contrôler ou prévoir. Un certain nombre de facteurs pourraient faire en sorte que les résultats réels diffèrent considérablement des résultats discutés dans les énoncés prospectifs, y compris, sans toutefois s’y limiter, les facteurs mentionnés dans la section « Facteurs de risque » de la notice annuelle de la société, offerte sur le site www.sedarplus.ca. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.