Financial Highlights (Unaudited)
- Net loss was
$97,003 for the three months endedSeptember 30, 2023 (September 30, 2022 – Net loss$8,520,121 ) primarily the result of negative investment performance in the quarter - Net loss per Class C common share (“Share”) for the three months ended
September 30, 2023 was$0.01 (September 30, 2022 – Net loss per share$1.12 ).
- The Company’s total shareholders’ equity decreased by
$253,874 for the three months endedSeptember 30, 2023 , primarily due to share repurchases of$156,871 under the Company’s Normal Course Issuer Bid (“NCIB”) and a net loss of$97,003 , primarily the result of negative investment performance during the quarter. - Shareholders’ equity per Share was
$8.85 as atSeptember 30, 2023 (December 31, 2022 –$9.28 ). - The Company’s total shareholders’ equity was
$66.6 million as atSeptember 30, 2023 , a decrease fromDecember 31, 2022 ($70.2 million ) resulting primarily from negative investment performance for the nine months endedSeptember 30, 2023 . - Shares outstanding were 7,524,629 as at
September 30, 2023 , a decrease fromDecember 31, 2022 (7,569,929) as a result of share repurchases under the NCIB, which was renewed onFebruary 14, 2023 . - At
September 30, 2023 , 85.9% of the investment portfolio was made up of private companies and 14.1% 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 68.8% of the Company’s holdings. - Management Expense Ratio (“MER”) before performance fees was 2.45% for the quarter ended
September 30, 2023 , up 0.10% compared to 2.35% in the third quarter of 2022.
PERFORMANCE (Based on Shareholders’ Equity) | 3 Month | 1 Year | 3 Year | 5 Year | Since Inception |
Class C | 0.1% | -15.4 | 20.7% | 15.9% | 17.5% |
The Company’s portfolio is materially concentrated in the shares of one publicly listed
Portfolio Highlights
During the third quarter, overall market sentiment was more challenging, with equities and risk assets broadly lower over the period. With the peak in inflation nearing or behind us and central banks slowing and, in some cases, pausing, their interest rate raising campaigns, the focus has turned to apprehension about future economic growth and the lag effect of tighter financial monetary conditions brought about by higher interest rates. We think this will remain in focus with concern from investors that tighter financial conditions will impact spending habits and that a recession is on the horizon.
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
During the period, 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.
Source:
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