Pender Growth Fund Provides Financial Highlights and Company Updates

Executive Summary

• Pender Growth Fund Inc. reported financial and operational results for the three and six months ended June 30, 2025, highlighting a net income of $8,742,446 for the quarter, driven by positive investment performance.
• Shareholders’ equity increased to $124,557,347 (or $17.58 per share), with 7,086,329 shares outstanding following share repurchases under the Normal Course Issuer Bid (NCIB).
• The fund’s Class C shares delivered a 7.6% return for the quarter and 23.0% over the past year, while the portfolio composition remains heavily weighted toward public companies (63.4%) with a Management Expense Ratio (MER) of 2.49%.

Key Details

• Net Income: $8,742,446 for the three months ended June 30, 2025 (compared to $22,533,335 in the same period of 2024).
• Net Income Per Share: $1.23 for the three months ended June 30, 2025 (compared to $3.09 in Q2 2024).
• Shareholders’ Equity: Increased by $1,475,840 to $124,557,347 as of June 30, 2025 (from $123,081,507 at December 31, 2024).
• Equity Per Share: $17.58 as of June 30, 2025 (up from $17.25 at December 31, 2024).
• Outstanding Shares: 7,086,329 shares as of June 30, 2025, a decrease of 46,900 shares due to repurchases under the NCIB.
• Portfolio Composition: 63.4% public companies and 36.6% private companies; Net Assets are 62.8% publicly listed, 36.3% private unlisted, and 0.9% cash/liabilities.
• Management Expense Ratio (MER): 2.49% for the quarter ended June 30, 2025, a decrease from 2.65% in Q2 2024.
• Performance Metrics (Class C Shares):
  • 3 Month: 7.6%
  • 1 Year: 23.0%
  • 3 Year: 16.3%
  • 5 Year: 30.4%
  • Since Inception: 20.8%
• NCIB Activity: The Company renewed its NCIB on February 20, 2025, allowing for the purchase of up to 587,342 shares (10% of public float) through February 19, 2026.
• Subsidiary Update: Pender Software Holdings Ltd (PSH) reported that performance of portfolio companies acquired in 2024 has aligned with expectations in 2025, with active acquisition efforts continuing in Canada, the US, and the UK.

Notable Quotes

• "Net income was $8,742,446 for the three months ended June 30, 2025... due to positive investment performance in the quarter."
• "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."
• "We believe that the Company continues to be well-positioned today to pursue its investment objectives and we continue to find attractive investments opportunities as valuations in micro and small cap stocks in North America remain attractive despite the recent rally this year."