Pender Growth Fund Provides Financial Highlights and Company Updates
May 27 2021 - 10:47PM
(TSXV: PTF) Pender Growth Fund Inc. (the
“Company”) today announced its financial and operational results
for the three months ended March 31, 2021.
Financial Highlights
(Unaudited)
- Net income was
$137,400 for the three months ended March 31, 2021 (March 31, 2020
– Net loss ($953,642) as a result of positive investment
performance in the quarter.
- Net income per
Share for the three months ended March 31, 2021 was $0.02 (March
31, 2020 – Net loss ($0.12)).
- Net assets per
Class C common share (“Share”) were $6.13 as at March 31, 2021
(December 31, 2020 - $6.11).
- The Company’s
net assets were $46.8 million as at March 31, 2021, a decrease from
December 31, 2020 ($47.3 million) resulting from share repurchases
under the Company’s Normal Course Issuer Bid (“NCIB”) that was
renewed on February 11, 2021and partially offset by positive
investment performance during the quarter.
- Shares
outstanding were 7,628,429, a decrease from December 31, 2020
(7,740,129) that was the result of share repurchases under the
Company’s NCIB.
- Management
Expense Ratio (“MER”) was 3.12% for the quarter ended March 31,
2021, down from 3.55% over the same period in the prior period,
primarily due to the fact that the increase in the average value of
Net Assets was proportionately larger than the increase in
expenses.
- At March 31,
2021, the Company had a 30.0% weighting in private companies and a
59.2% weighting in publicly-listed companies, with 10.8% cash on
hand and other assets less liabilities.
PERFORMANCE (based on Net asset value per
Share*) |
3 Month |
1 Year |
3 Year |
5 Year |
Since Inception |
Class C |
1.0% |
50.3% |
11.4% |
27.1% |
18.0% |
*It should be noted that total shareholders’
equity per share which is calculated using IFRS for financial
reporting purposes may be different from the monthly reported net
asset value per share.
Portfolio Highlights
During the period we continued to be active in
public markets where we saw what we believed to be strong
opportunities both in longer-term compounders and potentially
shorter-term close the discount situations. With the continued
strength in small cap markets, we have been decreasing some
positions and continue to work on new opportunities to deploy
capital at attractive rates of return.
As always, this quarter we worked closely with
our private portfolio companies and certain of our public portfolio
companies. We are pleased to see private technology companies from
within our portfolio having the opportunity to go public.
On February 11, 2021, the Company launched a new
NCIB, under which the Company may purchase a maximum of 700,866
shares, or 10% of the Company’s public float on launch date, in the
year ending February 11, 2022. During the period 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.
We believe that the Company is particularly
well-positioned today to pursue its investment objectives in the
context of current market volatility and valuations in micro and
small cap stocks in North America.
We encourage you to refer to the Company’s
MD&A and quarterly unaudited financial statements for the March
31, 2021 and the annual audited financial statements for the
year-ended December 31, 2020 and other disclosures available under
the Company’s profile at www.sedar.com for additional
information.
On April 6, 2021, the Company entered into a
definitive agreement (the “Arrangement Agreement”) for the
acquisition of all of the issued and outstanding shares of
Working Opportunity Fund (EVCC) Ltd. (“WOF”) under of a plan
of arrangement, subject to certain terms and conditions (the
"Transaction"). The Transaction was approved by the shareholders on
May 18, 2021 and approved by the Supreme Court of British Columbia
on May 25, 2021. Subject to certain customary closing conditions,
the Transaction is anticipated to close on or about May 28,
2021.
About the CompanyThe Company’s
objective is to achieve long-term capital appreciation for its
investors. 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 Company trades on the TSX Venture Exchange under the symbol
“PTF”.
Please visit www.pendergrowthfund.com.
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 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 and completion
of the Transaction with WOF. 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.sedar.com. 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.
For further information, please contact:
Tony Rautava
PenderFund Capital Management Ltd.
(604) 653-9625
Toll Free: (866) 377-4743
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