Financial Highlights (Unaudited)
- Net income was
$41,217 for the three months endedJune 30, 2023 (June 30, 2022 – Net loss$58,521,457 ). Investment performance was neutral in the quarter. - Net income per Class C common share (“Share”) for the three months ended
June 30, 2023 was$0.01 (June 30, 2022 – Net loss per share$7.71 ). - Shareholders’ equity per Share was
$8.85 as atJune 30, 2023 (December 31, 2022 –$9.28 ). - The Company’s total shareholders’ equity was
$66.8 million as atJune 30, 2023 , a decrease fromDecember 31, 2022 ($70.2 million ) resulting primarily from negative investment performance during the period. - Shares outstanding were 7,547,129 as at
June 30, 2023 , a decrease fromDecember 31, 2022 (7,569,929) as a result of share repurchases under the Company’s Normal Course Issuer Bid (“NCIB”), which was renewed onFebruary 14, 2023 . - At
June 30, 2023 , 83.5% of the investment portfolio was made up of private companies and 16.5% of public companies. However, taken together with the Company’s indirect exposure to public companies through its investment inPender Private Investments Inc. (“PPI”) andPender Technology Inflection Fund II Limited Partnership (“PTIF II”) , public companies make up 78.0% of the Company’s holdings. - Management Expense Ratio (“MER”) before performance fees was 2.66% for the quarter ended
June 30, 2023 , up 1.12% compared to 1.54% in the second quarter of 2022.
PERFORMANCE (Based on Shareholders’ Equity) | 3 Month | 1 Year | 3 Year | 5 Year | Since Inception |
Class C | 0.1% | -20.7% | 23.9% | 15.3% | 17.9% |
The Company’s portfolio is materially concentrated in the shares of one publicly listed
Portfolio Highlights
During the second quarter, financial markets responded positively to the growing expectations of economic soft landing and rallied with equities and corporate bonds performing well. Softening economic growth but avoiding an outright recession would be a favourable outcome, but with the rally in risk assets there is potential for disappointment if a more challenging economic backdrop were to materialize.
We believe that the Company continues to be well-positioned today to pursue its investment objectives despite current market volatility and valuations in micro and small cap stocks in
Investment results may be affected by future developments and new information that may emerge about inflation and the impact of central bank measures and geopolitical 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.
Significant Equity Investments & Recent Developments
At
On
After receiving approval from the PPI shareholders, a satisfactory Fairness Opinion and court approval, the Company acquired the remaining 2% of PPI’s Legacy Shares at a purchase price
Copperleaf Technologies Inc.
At
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
We encourage you to refer to the Company’s MD&A and quarterly unaudited financial statements for
About the Company
Please visit www.pendergrowthfund.com.
For further information, please contact:
Corporate Secretary
(604) 653-9625
Toll Free: (866) 377-4743
Neither the
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.
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