Pender Growth Fund Provides Financial Highlights and Company Updates

Globe and Mail

7 days ago

VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Pender Growth Fund Inc. (the 'Company') today announced its financial and operational results for the three months ended March 31, 2025.
Financial Highlights
Net loss was $6,787,305 for the three months ended March 31, 2025 (March 31, 2024 – net income $12,262,927) due to negative investment performance during the year.
Net loss per Class C common share ('Share') for the three months ended March 31, 2025 was $0.95 (March 31. 2024 – Net income per Share $1.67).
The Company's total shareholders' equity decreased by $7,113,121, from $123,081,507 at December 31, 2024 to $115,968,386 as at March 31, 2025, due to net loss of $6,787,305 primarily a result of negative investment performance, offset by shares repurchased of $325,816 under the Company's Normal Course Issuer Bid ('NCIB').
Shareholders' equity was $16.33 per Share as at March 31, 2025 (December 31, 2024 – $17.25).
7,101,429 shares were outstanding as at March 31, 2025 (December 31, 2024 – 7,133,229), a decrease of 31,800 shares as a result of shares repurchase under the NCIB, which was renewed on February 20, 2025.
At March 31, 2025, 59.6% of the investment portfolio was made up of public companies and 40.4% of private companies and Net Assets were 54.6% publicly listed companies, 37.0% private unlisted companies, and 8.4% cash and other assets net of liabilities.
Management Expense Ratio ('MER') before performance fees was 2.44% for the quarter ended March 31, 2025, 0.69% lower compared to 3.13% in the first quarter of 2024.
Public equity markets saw mixed performance in the first quarter of 2025, taking a breather following a year of impressive results. The S&P/TSX Composite Index gained 1.5% in the quarter, while the S&P/TSX Small Cap Index added 0.9%. Markets in the US slipped in the quarter, with the S&P 500 Index (CAD) down -4.2% and the small cap Russell 2000 Index (CAD) ending -9.4% lower in the quarter.
Equity markets were mixed as investors grew concerned about the aggressive policy shifts of the Trump administration's second term. The rise of protectionism, deregulation and a more disruptive foreign policy stance fueled heightened uncertainty that resulted in lower expectations for economic growth. These uncertainties have raised the prospects of a recession amid weakening consumer sentiment, widespread job cuts and the impact of escalating tariffs. Against these headwinds, the Federal Reserve opted to hold interest rates steady during the quarter at 4.25% to 4.5%. This contrasted with the trend of continued interest rates cuts in Canada, As the Bank of Canada reduced rates by 25bp in January, followed by another 25bp reduction in March. This left the benchmark lending rate at 2.75% at quarter-end and highlighted the softening economic environment in Canada.
We believe that the Company continues to be well-positioned today to pursue its investment objectives and we continue to find attractive investments opportunities as valuations in micro and small cap stocks in North America remain attractive despite the recent rally this year.
Investment results may be affected by future developments and new information that may emerge about broad economic conditions, inflation, central bank measures, geopolitical risks, market risk, unexpected judicial or regulatory proceedings 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.
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 20, 2025, the Company launched a new NCIB, under which the Company may purchase a maximum of 587,342 shares, or 10% of the Company's public float on launch date, during the one-year period ending February 19, 2026.
We encourage you to refer to the Company's MD&A and quarterly unaudited financial statements for March 31, 2025, the annual audited financial statements for the year-ended December 31, 2024, 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 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.
[phone]
Toll Free: [phone]
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. 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.