Redemption Notice - Class R Shares
Class R Shares are generally redeemable only after the fifth anniversary of the date of issuance. However, Shareholders that purchased their shares of Pender Growth Fund (the “Fund”) at any time prior to March 1, 2008 may submit redemption requests on or before November 30, 2012. Following such date, all valid requests received prior to such date will be redeemed with cash available to meet redemptions of Redeemable Shares on a pro rata basis.
If the Fund fails to redeem on or before December 15, 2012, any Redeemable Shares ("Unredeemed Redemption Shares") for which a valid redemption request has been received, the holders of those Unredeemed Redemption Shares shall thereafter, in preference or priority to any redemptions pursuant to redemption requests received after that date, be entitled to payment of the redemption price. Payment of the redemption price for Unredeemed Redemption Shares would be made, pro-rata amongst all Unredeemed Redemption Shares for which a redemption request is received by the Fund in the year ending on the same Redemption Cut-off Date, at such time that the directors have determined, acting in good faith, that the Fund has sufficient funds available to meet the unpaid redemption price for any of the Unredeemed Redemption Shares from time to time.
Pursuant to the requirements of the Small Business Venture Capital Act (the “SBVCA”), the sources of funds available to the Fund to meet redemption requests are investment income from investments, realized portfolio gains and proceeds from the sale of "mature investments" in accordance with the SBVCA. Portfolio investments become mature once they have been held by the Fund for a minimum period of five years from the date the eligible investment is made. The ability of the Fund to meet redemption requests for Redeemable Shares in any year is dependent upon a number of factors which are highly variable and difficult to predict. These include, principally, the performance of the Fund’s venture capital investments and the rate at which they mature, including the timing of the Fund’s ability to exit those investments and the amount of proceeds that the Fund realizes on those investments.
The Fund is prohibited from honouring redemption requests for Redeemable Shares in the circumstances described under the headings "Redemption of Securities – Suspension of Redemptions" and elsewhere in the Fund’s Prospectus.
The Fund is obligated by the terms of the Redeemable Shares to use 70% of the proceeds of each disposition of a mature investment in any year to fund redemption requests for that year, subject to the requirements to refuse redemption requests and the investments requirements of the Small Business Venture Capital Act.