Pender Growth Fund Provides Financial Highlights and Company Updates

/EIN News/ -- VANCOUVER, British Columbia, April 04, 2025 (GLOBE NEWSWIRE) -- (TSXV: PTF) Pender Growth Fund Inc. (the “Company”) today announced its financial and operational results for the year ended December 31, 2024.

Financial Highlights

• Net income was $55,473,592 for the year ended December 31, 2024 (December 31. 2023 – Net income $1,029,528) due to positive investment performance during the year.
• Net income per Class C common share (“Share”) for the year ended December 31, 2024 was $7.61 (December 31. 2023 – Net income per Share $0.14).

• The Company’s total shareholders’ equity increased by $53,195,329, from $69,886,178 at December 31, 2023 to $123,081,057 as at December 31, 2024, due to net income from positive investment performance of $55,473,592 during the year, offset by shares repurchase of $2,278,263 under the Company’s Normal Course Issuer Bid (“NCIB”).
  • Shareholders’ equity was $17.25 per Share as at December 31, 2024 (December 31, 2023 – $9.48).
  • 7,133,229 shares were outstanding as at December 31, 2024 (December 31, 2023 – 7,368,229), a decrease of 235,000 shares as a result of shares repurchase under the NCIB, which was renewed on February 15, 2024.
  • At December 31, 2024, 64.7% of the investment portfolio was made up of public companies and 35.3% of private companies and Net Assets were 56.9% publicly listed companies, 31.1% private unlisted companies, and 12.0% cash and other assets net of liabilities.
  • Management Expense Ratio (“MER”) before performance fees was 2.65% for the year ended December 31, 2024, up 0.34% compared to 2.31% in 2023.
    
    

PERFORMANCE (Based on Shareholders’ Equity)	3 Month		1 Year		3 Year		5 Year		Since Inception
Class C	14.2	%	81.9	%	-12.9	%	29.9	%	21.4	%

Portfolio Highlights

The completion of the sale of Copperleaf in the third quarter of 2024 and the resulting injection of $70 million cash, substantially changed the Company’s portfolio.

In October, the Company closed the purchase of four private technology companies from Pluribus Technologies. The acquisition was made by Pender Software Holdings (“PSH”) a new entity owned 86% by Pender, with the balance owned by Acorn Partners Inc. (“Acorn”) and its principals. Acorn (www.acorncappartners.com) is a Vancouver based company that invests in tech companies and provides advisory services to clients. In early 2025, Acorn was merged into PSH and the shares of PSH formerly held by the Acorn were transferred to its principals. The four software companies acquired are each cash flow positive and stable. PSH is leaving existing management in place to facilitate a focus on operational excellence with strategic support and access to capital managed by Pender and Acorn. Ampere Chan, the founder and CEO of Acorn is the CEO of PSH. Pender intends to use PSH as a vehicle for investing in additional software companies. We believe this new enterprise has great potential. 

With the significant run up in equities over the last year that has pushed large cap equity valuations to multi year highs, we remain vigilant and prepared for increased volatility as we enter 2025. The general trend in inflation continues to moderate towards central bank target levels and expectations are for continued interest rates cuts, albeit at a more moderate pace. Potential headwinds could also include trade policies, particularly tariffs, which could weigh on corporate earnings, and fiscal challenges in developed economies as government deficit spending remains high. There is always the potential for volatility as market expectations shift after such a strong run in risk assets in the past few quarters.

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.

In 2024, as always, 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 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.
(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 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.