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.
PERFORMANCE (Based on Shareholders’
Equity) |
3 Month |
1 Year |
3 Year |
5 Year |
Since Inception |
Class C |
0.1% |
-15.4 |
20.7% |
15.9% |
17.5% |
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.
Portfolio Highlights
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.
Significant Equity Investments & Recent
Developments
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.
Other Highlights
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, 2023, the
Company launched a new NCIB, under which the Company may purchase a
maximum of 663,045 shares, or 10% of the Company’s public float on
launch date, during the one-year period ending February 13,
2024.
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.
About the
Company
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 NAV
on its website, generally within five business days of each month
end.
Please visit www.pendergrowthfund.com.
For further information, please contact:
Tony Rautava
Corporate Secretary Pender Growth Fund Inc. (604) 653-9625Toll
Free: (866) 377-4743Neither 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 news release may contain forward-looking
statements (within the meaning of applicable securities laws)
relating to the business of the Company 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 regarding the Company’s decreased
portfolio risk and future investment opportunities. The
forward-looking statements in this news 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, the factors discussed
under the heading “Risk Factors” in the Company's annual
information form available at 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.
Pender Growth (TSXV:PTF)
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から 12 2023 まで 12 2024