Unaudited Condensed Interim Financial Statements of
PENDER GROWTH FUND INC.
Three months and six months ended June 30, 2023
NOTICE OF NO AUDITOR REVIEW OF THE INTERIM FINANCIAL STATEMENTS
PenderFund Capital Management Ltd., the Manager of the Pender Growth Fund Inc. (the "Company"), appoints an independent auditor to audit the Company' Annual Financial Statements. In accordance with Canadian securities laws (National Instrument 51-102 "Continuous Disclosure Obligations"), the Manager must disclose if an auditor has not reviewed the interim Financial Statements.
The Company' independent auditor has not performed a review of these Interim Financial Statements in accordance with standards established by the Chartered Professional Accountants of Canada.
PENDER GROWTH FUND INC.
Condensed Interim Statements of Financial Position (Unaudited)
June 30, | December 31, | ||||
Notes | 2023 | 2022 | |||
Assets | |||||
Cash | $ | 2,659,321 | $ | 1,552,667 | |
Income taxes receivable | 13 | 3,502,595 | 3,502,595 | ||
Due from related parties | 5 | 3,317,809 | 3,023,368 | ||
Divestment proceeds receivable | 74,906 | 1,916,139 | |||
Prepaid expenses | 11,248 | 6,770 | |||
Interest receivable | - | 162,932 | |||
Investments | 4, 12 | 60,574,366 | 66,299,539 | ||
Total assets | 70,140,245 | 76,464,010 | |||
Liabilities | |||||
Interest payable | 16,443 | 31,864 | |||
Share repurchase payable | 5,774 | 13,186 | |||
Accounts payable and accrued liabilities | 132,297 | 142,880 | |||
Deferred income tax liability | 13 | 908,983 | 1,536,825 | ||
Loan payable | 10 | 2,250,000 | 4,500,000 | ||
Total liabilities | 3,313,497 | 6,224,755 | |||
Shareholders' equity | |||||
Class C Common shares: | |||||
Contributed capital | 8 | 17,281,875 | 17,442,542 | ||
Retained earnings | 49,544,873 | 52,796,713 | |||
Total Shareholders' Equity | $ | 66,826,748 | $ | 70,239,255 | |
Number of shares outstanding | 8 | 7,547,129 | 7,569,929 | ||
Total shareholders' equity per share | $ | 8.85 | $ | 9.28 | |
Subsequent events | 15 |
The accompanying notes are an integral part of these financial statements.
Approved on behalf of the Board of Directors:
"David Barr" | Director | "Kelly Edmison" | Director |
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PENDER GROWTH FUND INC.
Condensed Interim Statements of Comprehensive Income (Unaudited)
Three months | Three months | Six months | Six months | |||||||
ended | ended | ended | ended | |||||||
Notes | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||
Revenue: | ||||||||||
Interest income (reversal) | 6 | $ | 32,551 | $ | 750 | $ | (107,353) | $ | 4,392 | |
Foreign exchange (loss) gain | (3,424) | 4,761 | (5,173) | (8,819) | ||||||
Changes in fair value of investments: | ||||||||||
Net realized gain (loss) | 552,658 | (3,021,127) | (474,738) | (6,818,928) | ||||||
Net change in unrealized depreciation | (146,392) | (62,414,222) | (2,623,705) | (116,239,693) | ||||||
Total revenue | 435,393 | (65,429,838) | (3,210,969) | (123,063,048) | ||||||
Operating Expenses: | ||||||||||
Administration expenses | 170,913 | 106,558 | 262,644 | 230,077 | ||||||
Management fees | 5 | 161,398 | 212,661 | 330,796 | 452,725 | |||||
Interest and financing expenses | 10 | 60,962 | 68,768 | 146,042 | 358,313 | |||||
Transaction costs | 47,426 | 4,434 | 47,998 | 15,512 | ||||||
Audit and professional fees | 30,035 | 4,131 | 69,545 | 95,840 | ||||||
Directors' fees | 15,788 | 14,698 | 28,398 | 27,283 | ||||||
Legal fees | 6,878 | 4,896 | 10,116 | 17,480 | ||||||
Custody and recordkeeping fees | 3,827 | 7,459 | 8,084 | 15,800 | ||||||
Total operating expenses | 497,227 | 423,605 | 903,623 | 1,213,030 | ||||||
Net operating loss | $ | (61,834) | $ | (65,853,443) | $ | (4,114,592) | $ | (124,276,078) | ||
Other Items: | ||||||||||
Performance fees | 5 | 217,336 | (14,623,714) | (350,624) | (26,628,063) | |||||
Fees waived by the Manager | 5 | (54,334) | 3,655,928 | 87,656 | 6,657,016 | |||||
Net amount | 163,002 | (10,967,786) | (262,968) | (19,971,047) | ||||||
Amount of Pender Private Investments | ||||||||||
Inc.'s ("PPI") performance fee earned by | ||||||||||
the Manager attributable to the | ||||||||||
Company's ownership of PPI shares | 5 | (302,634) | 13,270,570 | 28,058 | 24,228,481 | |||||
Total performance fee adjustment | (139,632) | 2,302,784 | (234,910) | 4,257,434 | ||||||
Net income (loss) before income taxes (recovery) | $ | 77,798 | $ | (68,156,227) | $ | (3,879,682) | $ | (128,533,512) | ||
Income taxes (recovery) | 13 | (40,539) | (40,539) | |||||||
Current | - | - | ||||||||
Deferred | 36,581 | (9,594,231) | (627,842) | (18,149,811) | ||||||
Total income taxes (recovery) | 36,581 | (9,634,770) | (627,842) | (18,190,350) | ||||||
Net Income (loss) | $ | 41,217 | $ | (58,521,457) | $ | (3,251,840) | $ | (110,343,162) | ||
Net Income (loss), per share: | ||||||||||
Class C shares | $ | 0.01 | $ | (7.71) | $ | (0.43) | $ | (14.52) | ||
Weighted average number of non-redeemable | ||||||||||
Class C shares outstanding | 7,550,579 | 7,588,204 | 7,558,872 | 7,597,615 |
The accompanying notes are an integral part of these financial statements.
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PENDER GROWTH FUND INC.
Condensed Interim Statements of Changes in Equity (Unaudited)
Six months | Six months | ||||
ended | ended | ||||
Class C shares | Note | June 30, 2023 | June 30, 2022 | ||
Balance, beginning of period | $ | 70,239,255 | $ | 198,643,655 | |
Net loss | (3,251,840) | (110,343,162) | |||
Capital transactions | 8(b) | (160,667) | (468,536) | ||
Balance, end of period | $ | 66,826,748 | $ | 87,831,957 |
The accompanying notes are an integral part of these financial statements.
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Pender Growth Fund Inc. published this content on 24 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2023 21:58:51 UTC.