Financial transaction

Pender Growth Fund provides financial highlights and

VANCOUVER, British Columbia, May 27, 2022 (GLOBE NEWSWIRE) — (TSXV: PTF) Pender Growth Fund Inc. (the “Company”) today announced its financial and operating results for the quarter 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 of $137,400) primarily due to negative investment performance during the quarter.
  • Net loss per share for the three months ended March 31, 2022 was $6.81 (March 31, 2021 – Net earnings per share of $0.02).
  • Shareholders’ equity per Class C common share (“Share”) was $19.29 as at March 31, 2022 ($26.08 as at December 31, 2021).
  • The Company’s total equity was $146.5 million as of March 31, 2022, a decrease from December 31, 2021 ($198.6 million) primarily due to lower public equity prices during the quarter.
  • The number of shares outstanding was 7,595,229, a decrease from December 31, 2021 (7,616,529) following share repurchases under the Normal Course Issuer Bid of the Company, which was renewed on February 14, 2022.
  • As of March 31, 2022, 75.8% of the investment portfolio is made up of private companies and 24.2% of public companies. However, 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 represent 90 .5% of the Company’s holdings.
  • Management expense ratio (“MER”) excluding performance fees was 1.95% for the three months ended March 31, 2022, down from 3.16% compared to the same period of the prior period .
PERFORMANCE
(Based on equity)
3 months 1 year 3 years 5 years Since
Creation
Class C -25.6% 214.2% 65.7% 34.9% 28.3%

The Company’s portfolio is primarily concentrated in the shares of a publicly traded holding company, Copperleaf Technologies Inc. (“Copperleaf”), given both its direct investment and its indirect investment through its ownership of PPI shares. As of December 31, 2021, Copperleaf’s closing price was $23.85 per share. As of March 31, 2022, Copperleaf’s closing price was $16.18 per share, which reduced the Company’s unrealized gain on the stake, and the Company’s equity decreased by $6.79 per share. share in the first quarter of 2022, to settle at $19.29 per share. The value of the Company’s direct and indirect equity interests in Copperleaf was $120,632,216 as of March 31, 2022, or 82.4% of the Company’s total equity. As of May 27, 2022, Copperleaf’s closing price was $8.16 per share. There can be no assurance that the Company will be able to realize the value of this investment.

Portfolio Highlights

The war between Russia and Ukraine, the COVID-19 global health pandemic, and the decision by central banks to reduce monetary and fiscal stimulus and raise interest rates to control inflation have raised concerns. concerns about the outlook for economic growth and created equity volatility as these developments were digested and added uncertainty. We believe the Company continues to be well positioned today to pursue its investment objectives despite the current market volatility and valuations of micro and small cap stocks in North America.

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

Key Equity Investments and Recent Developments

Pender Private Investments Inc.

As of March 31, 2022, the Company owned approximately 97% of the shares inherited from PPI, formerly Working Opportunity Fund (EVCC) Ltd. (“WOF”). These shares were acquired in May 2021 from shareholders of WOF (“Leaving Shareholders”) pursuant to 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 of the net gains on the book values ​​at the effective date of the WOF transaction arising from the activity of divestment from the Venture Series portfolio before May 18, 2022. In the absence of a letter of intent, term sheet or binding agreement for a divestiture completed after November 18, 2021 and before February 18, 2022, latest period during which an additional exit payment could have been triggered, the right to any additional cash payment ceased and the exit shares were automatically redeemed in May 2022.

Copperleaf Technologies Inc.

As of March 31, 2022, the Company owned 10.9% of the issued and outstanding shares of Copperleaf, both directly and through its investment in PPI. The value of the Company’s direct and indirect equity interests in Copperleaf was $120,632,216 as of March 31, 2022, or 82.4% of the Company’s total equity.

Other Highlights

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

We encourage you to review the Company’s MD&A and unaudited quarterly financial statements as of March 31, 2022, the audited annual financial statements for the year ended December 31, 2021, and other information available under the Company’s profile. Company on www.sedar. com for more information.

About the company
Pender Growth Fund Inc is an investment company. Its investment objective is to achieve long-term capital growth. The Company uses its small capital base and long-term horizon to invest in unique situations, primarily small caps, special situations and illiquid public and private companies. The company invests in public and private companies based primarily in Canada and the United States, primarily in the technology sector. It trades on the TSX Venture Exchange under the symbol “PTF” and posts its reporting net asset value on its website, usually within five business days of the end of each month.

Please visit www.pendergrowthfund.com.

For more information, 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 term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information

This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the Company’s business and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, ” estimate” and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts and projections and include, but are not limited to, statements regarding the Company’s reduced portfolio risk and future investment opportunities. The forward-looking statements contained in this press release are based on certain assumptions; they are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, factors discussed under “Risk Factors” in the Company’s Annual Information Form. Company available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate, as actual results may differ materially from those expressed in such forward-looking statements. Accordingly, readers should not place undue reliance on these forward-looking statements. Further, these forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.