Pender Growth Fund offers 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 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 for 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).
  • Equity per Class C common share (“Share”) as of March 31, 2022 was $19.29 (December 31, 2021 – $26.08).
  • The Company’s total shareholders’ equity as of March 31, 2022 was $146.5 million, a decrease from December 31, 2021 ($198.6 million) primarily due to a decrease in market prices of public company stocks during the quarter.
  • Shares outstanding were 7,595,229, a decrease from December 31, 2021 (7,616,529) due to share repurchases under the Company’s Normal Course Issuer Bid (“NCIB”), 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% is made up of public companies. However, combined with the Company’s indirect exposure to public companies through its investments 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 from equity holdings the company.
  • The Management Expense Ratio (“MER”) excluding performance fees was 1.95% for the quarter ended March 31, 2022 compared to 3.16% for the same period in the prior period.
PERFOMANCE
(based on equity)
3 months 1 year 3 years 5 years Since
beginning
Class C -25.6% 214.2% 65.7% 34.9% 28.3%

The Company’s portfolio is primarily focused on the shares of a publicly traded portfolio company, Copperleaf Technologies Inc. (“Copperleaf”), considering both its direct investment and its indirect investment through its ownership of PPI stock. On December 31, 2021, Copperleaf’s closing price was $23.85 per share. On March 31, 2022, Copperleaf’s closing price was $16.18 per share, reducing the Company’s unrealized gain on the investment, and the Company’s equity decreased by $6.79 per share to 19.29 in the first quarter of 2022 $ per share return. The value of the Company’s direct and indirect interests in Copperleaf as of March 31, 2022 was $120,632,216, representing 82.4% of the Company’s total equity. On 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 Russia-Ukraine war, the COVID-19 global health pandemic and central banks’ move to scale back monetary and fiscal stimulus and raise interest rates to control inflation have all raised concerns about the outlook for economic growth These stock volatility developments were digested and added uncertainty. Today, we believe the company remains well positioned to pursue its investment objectives despite the current market volatility and valuations of micro and small-cap stocks in North America.

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

Significant equity investments and recent developments

Pender Private Investments Inc.

As of March 31, 2022, the Company owned approximately 97% of Legacy shares of PPI, formerly Working Opportunity Fund (EVCC) Ltd. (“WOF”). These shares were acquired by shareholders of WOF (“Exiting Shareholders”) in May 2021 as part of 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 net earnings over book values ​​as of the effective date of the WOF transaction from divestment activities in the Venture Series portfolio prior to May 18, 2022 Da after If no letter of intent, term sheet or binding agreement to sell has been entered into between November 18, 2021 and prior to February 18, 2022, the last period in which an additional exit payment could have been triggered, the right to an additional exit payment exists was discontinued and the exit venture shares were automatically redeemed in May 2022.

Copperleaf Technologies Inc.

As of March 31, 2022, the Company owned 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 interests in Copperleaf as of March 31, 2022 was $120,632,216, representing 82.4% of the Company’s total equity.

More highlights

We have continued to purchase 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 implemented a new NCIB under which the Company may acquire a maximum of 678,839 shares or 10% of the Company’s public outstanding at the Inception Date during the one-year period ending February 13, 2023.

We encourage you to refer to the Company’s MD&A and unaudited quarterly financial statements for the year ended March 31, 2022, audited financial statements for the year ended December 31, 2021 and other disclosures contained in the Company’s profile at www. sedar are available. com for more information.

about the company
Pender Growth Fund Inc is an investment firm. Its investment objective is long-term capital growth. The firm uses its small capital base and long-term horizon to invest in unique situations, primarily small cap, special situation and illiquid public and private companies. The firm invests in public and private companies primarily based in Canada and the United States, primarily in the technology sector. It trades on the TSX Venture Exchange under the symbol “PTF” and publishes its NAV report on its website, generally within five business days of each month end.

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) regarding 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, without limitation, statements about the Company’s reduced portfolio risk and future investment opportunities. The forward-looking statements 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 those discussed in the forward-looking statements, including but not limited to those factors discussed under the heading “Risk Factors” on the Company’s annual information form available at www.sedar .com . There can be no assurance that forward-looking statements will prove to be accurate, as actual outcomes and results could differ materially from those projected in these forward-looking statements. Therefore, readers should not rely on such forward-looking statements. In addition, these forward-looking statements speak 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 statements, whether as a result of new information, future events or otherwise.

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