VANCOUVER, B.C. (TSXV: PTF) Pender Growth Fund Inc. (the “Company”) today announced its financial and operational results for the year ended December 31, 2019.
Financial Highlights
- Net assets per Class C common share (“Share”) as at December 31, 2019 were $4.19 (December 31, 2018 – $4.14).
- Management Expense Ratio (“MER”) was 3.94% for the year ended December 31, 2019, down from 4.18% over same period in the prior year, primarily due to the reduction in management fee rates announced in June 2019.
- The Company’s net assets as at December 31, 2019 were $33.8 million (December 31, 2018 – $17.2 million) and Shares outstanding were 8,083,329 (December 31, 2018 – 4,152,545), both increased as a result of the public offering of Shares in Q2 of 2019.
- At December 31, 2019, the Company had a 50% weighting in private investments and a 25% weighting in public companies, with 24% cash on hand and 1% other assets. The cash will allow us to continue to act quickly when entry points are favourable in the opportunities we are actively tracking.
- Net income per Share for the year ended December 31, 2019 was $0.31 (December 31, 2018 – loss of $0.35), as a result of realized gains from divestitures and moderate net unrealized gains on publicly-listed portfolio companies during the year, partially offset by fees and expenses.
| PERFORMANCE (based on Reported Net Asset Value per Share) | 3 Month | 1 Year | 3 Year | 5 Year | Since Inception |
| Class C | 18.7% | 12.6% | 2.4% | 32.1% | 17.1% |
Source: PenderFund
Corporate Update
Following the Company’s capital raise in Q2 of 2019, we believe portfolio risk decreased and the Company’s liquidity profile improved as the relative weighting in key private companies was reduced. In Q4 we continued to deploy the capital raised and we encourage you to refer to the Company’s MD&A and annual audited financial statements for the year-ended December 31, 2019 for additional information and disclosures available under the Company’s profile at www.sedar.com.
The Company continues to aggressively deploy capital in markets where the massive, unprecedented impact of COVID-19 creates what we believe to be excellent buying opportunities. We believe that we are particularly well-positioned today to pursue our investment objectives in the context of current market volatility and valuations in micro and small cap stocks in North America.
During the year the Company began to deploy the capital it raised in Q2, adding two private companies and eight publicly listed companies to the portfolio. The Company quickly realized a gain on its investment in Carbonite Inc., acquired in October 2019 and sold after the announcement of its upcoming acquisition. Source: PenderFund
Portfolio Highlights
The Company announces that Tony Rautava has been appointed Corporate Secretary of the Company. Mr. Rautava has worked with investment funds since 2003 in the areas of operations, investment management and financial reporting. He is also experienced with compliance and continuous disclosure obligations, having served as the corporate secretary of a reporting issuer listed on the Toronto Stock Exchange.
About the Company
Pender Growth Fund Inc. is an investment company with the objective of achieving 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.
For further information, please contact:
Tony Rautava
PenderFund Capital Management Ltd.
(604) 688-1511
Toll Free: (866) 377-4743
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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 future investment opportunities, including investment opportunities arising as the result of COVID-19’s impact on the financial markets, as well the Company’s belief that it has decreased its portfolio risk. 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.