VANCOUVER, British Columbia, May 27, 2022 (GLOBE NEWSWIRE) -- (TSXV: PTF) Pender Growth Fund Inc. (the “Company”) today announced its financial and operational results for the three months ended March 31, 2022.

Financial Highlights (Unaudited)

• Net loss was $51,821,705 for the three months ended March 31, 2022 (March 31, 2021 – Net income $137,400) primarily the result of negative investment performance in the quarter.
• Net loss per Share for the three months ended March 31, 2022 was $6.81 (March 31, 2021 – Net income per share $0.02).
• Shareholders’ equity per Class C common share (“Share”) was $19.29 as at March 31, 2022 (December 31, 2021 – $26.08).

• The Company’s total shareholders’ equity was $146.5 million as at March 31, 2022, a decrease from December 31, 2021 ($198.6 million) primarily resulting from a decline in market prices of public company shares during the quarter.
• Shares outstanding were 7,595,229, a decrease from December 31, 2021 (7,616,529) as a result of share repurchases under the Company’s Normal Course Issuer Bid (“NCIB”), which was renewed on February 14, 2022.
• At March 31, 2022, 75.8% of the investment portfolio is made up of private companies and 24.2% 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 Private Debt Opportunities Fund I Limited partnership (“PPDF”), public companies make up 90.5% of the Company’s holdings.
• Management Expense Ratio (“MER”) excluding performance fees was 1.95% for the quarter ended March 31, 2022, down from 3.16% over the same period in the prior period.

The Company’s portfolio is materially concentrated in the shares of one publicly listed Portfolio Company, Copperleaf Technologies Inc. (“Copperleaf”), considering both its direct investment and its indirect investment through its holding of shares of PPI. At December 31, 2021, the closing price of Copperleaf was $23.85 per share. At March 31, 2022, the closing price of Copperleaf was $16.18 per share, which reduced the Company’s unrealized gain on the holding, and the Company’s shareholders’ equity decreased by $6.79 per share in the first quarter of 2022, to $19.29 per share. The value of the Company’s direct and indirect holdings of Copperleaf was $120,632,216 at March 31, 2022, which is 82.4% of the Company’s total shareholders’ equity. At May 27, 2022, the closing price of Copperleaf was $8.16 per share. There can be no assurance that the Company will be able to realize the value of this investment.

Faits saillants du portefeuille
The war between Russia and Ukraine, the COVID-19 global health pandemic and the move by central banks to taper monetary and fiscal stimulus and raise interest rates to control inflation led to concerns regarding the outlook for economic growth and created volatility in equities as these developments were digested and added uncertainty. 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.

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 March 31, 2022, the Company held approximately 97% 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”).

The Exiting Shareholders had a limited and conditional right to an additional cash payment from the Company based on a percentage share of the net gains over carrying values at the effective date of the WOF Transaction from divestment activity in the Venture Series portfolio before May 18, 2022. Because there was no letter of intent, term sheet or binding agreement for a divestment entered into after November 18, 2021 and before February 18, 2022, the final period during which an additional exit payment could have been triggered, the right to any additional cash payment has ceased and the exit venture shares were redeemed automatically in May 2022.

Copperleaf Technologies Inc.

At March 31, 2022, the Company held 10.9% 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 $120,632,216 at March 31, 2022, which is 82.4% of the Company’s total shareholders’ equity.

Autres faits saillants

We continued to acquire shares of the Company in the market under our NCIB because we believe the shares are trading at a discount to their intrinsic value. On February 14, 2022, the Company launched a new NCIB, under which the Company may purchase a maximum of 678,839 shares, or 10% of the Company’s public float on launch date, during the one year period ending February 13, 2023. 

We encourage you to refer to the Company’s MD&A and quarterly unaudited financial statements for March 31, 2022, the annual audited financial statements for the year-ended December 31, 2021, as well as other disclosures available under the Company’s profile at www.sedar.com .

À propos de la société
Pender Growth Fund Inc is an investment firm. Its investment objective is to achieve long-term capital growth. The Company utilizes its small capital base and long-term horizon to invest in unique situations, primarily small cap, special situations, and illiquid public and private companies. The firm invests in public and private companies based primarily in Canada and the U.S., principally in the technology sector. It trades on the TSX Venture Exchange under the symbol “PTF” and posts its Reporting NAV on its website, generally within five business days of each month end.

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.sedar.com. Rien ne garantit que ces énoncés prospectifs seront justes, car les résultats réels peuvent nettement différer de ceux prévus dans de tels énoncés. À cet égard, le lecteur ne doit pas se fier indûment à tout énoncé prospectif. Qui plus est, ces énoncés prospectifs sont émis en date de ce communiqué de presse et, sauf lorsque la loi en vigueur l’exige expressément, la société n’est pas tenue de faire une mise à jour publique ou de réviser tout énoncé prospectif, que ce soit à la suite d’une nouvelle information, d’événements futurs ou de toute autre raison.