VANCOUVER, B.C. (TSXV: PTF) Pender Growth Fund Inc. (the “Company”) today announced its financial and operational results for the three months ended March 31, 2026.
Financial Highlights
- Net loss was $528,121 for the three months ended March 31, 2026 (March 31, 2025 – net loss of $6,787,305).
- Net loss per Class C common share (“Share”) was $0.08 for the three months ended March 31, 2026 (March 31, 2025 – net loss per Share of $95).
- The Company’s total shareholders’ equity decreased by $1,305,622, from $115,404,324 as at December 31, 2025 to $114,098,702 as at March 31, 2026. This decrease was primarily due to a net loss of $528,121 and $777,501 of shares repurchased under the Company’s Normal Course Issuer Bid (“NCIB”).
- Shareholders’ equity was $16.58 per Share as at March 31, 2026 (December 31, 2025 – $16.65).
- 6,882,129 Shares were outstanding as at March 31, 2026 (December 31, 2025 – 6,933,229), representing a decrease of 51,100 Shares as a result of share repurchases under the NCIB, which was renewed on February 20, 2026.
- As at March 31, 2026, 4% of the investment portfolio was comprised of publicly listed companies and 63.6% of private companies. Based on Net Asset value, Net Assets were invested 35.3% in publicly listed companies, 61.6% in private unlisted companies, and 3.1% in cash and other assets, net of liabilities.
- Management Expense Ratio (“MER”) before performance fees was 2.71% for the quarter ended March 31, 2026, an increase of 0.27% compared to 44% in the first quarter of 2025.
Portfolio Highlights
During the first quarter, Pender Growth Fund continued to execute its long-term, value-oriented investment strategy, emphasizing concentrated, high-conviction opportunities across both public and private markets.
Public equity markets in Q1 2026 experienced a mid-quarter pivot, as an initially optimistic start to the year was derailed by the outbreak of conflict involving Iran in late February and continued volatility in the software sector. Investors began to question the sustainability of AI growth amid elevated valuations and potential delays in AI-related infrastructure spending within an increasingly stagflationary environment. Software companies were particularly vulnerable, with certain peer sets seeing index declines of 20% to 25% during the quarter as capital rotated into more defensive names.
Throughout the quarter, the Company maintained an active approach to portfolio management, continuing to support private investments while closely monitoring valuations and company-specific catalysts within the public equity portfolio.
The Company remained actively engaged with key portfolio companies during the quarter, including General Fusion Inc., a long-standing private holding. In January 2026, General Fusion announced that it had entered into a definitive business combination agreement expected to result in the company listing on the Nasdaq, with completion anticipated in mid-2026. This development represents a potentially meaningful value realization pathway for shareholders and highlights the Company’s ability to identify, support, and patiently hold transformational private companies as they advance toward significant corporate milestones.
Turning to the M&A environment, Q1 activity reflected a similar theme of dispersion. Geopolitical tensions and rising volatility created a more cautious environment for smaller deals, while the quarter was simultaneously dominated by megacap activity as the market prioritized larger, high-quality strategic acquisitions over the tuck-in approach prevalent in prior years.
Turning to public markets, corporate fundamentals remain solid across many sectors, even as the risk landscape has grown more complex. Geopolitical instability, elevated debt levels, political uncertainty, and rapid technological change all warrant careful monitoring. Rather than attempting to forecast every scenario, we remain focused on staying balanced and disciplined. Quality businesses have historically demonstrated greater resilience than the broader market during periods of stress, and we remain committed to our investment process carefully analyzing both new and existing opportunities.
SPACs returned to the spotlight during the quarter, with issuance activity remaining strong through the first few months of the year. January saw 24 SPAC IPOs raise more than $5.6 billion in trust capital, followed by 27 IPOs in February raising an additional $5.2 billion. Activity moderated in March, with 11 SPAC IPOs raising approximately $1.8 billion, though announced transactions continued to feature early-stage companies in sectors such as quantum computing, nuclear energy, and artificial intelligence seeking access to public markets and growth capital.
We expect markets to remain unsettled in the near term. Heightened geopolitical uncertainty suggests that volatility is unlikely to abate quickly. Against this backdrop, we continue to apply our investment discipline, positioning the portfolio to navigate a broad range of economic scenarios.
Other Highlights
The Company continued to acquire Shares of the Company in the market under its NCIB because management believes the Shares are trading at a discount to intrinsic value. On February 20, 2026, the Company launched a new NCIB, under which the Company may purchase a maximum of 585,681 Shares, representing 10% of the Company’s public float as of the launch date, during the one-year period ending February 19, 2027.
Readers are encouraged to refer to the Company’s MD&A and quarterly unaudited financial statements for March 31, 2026, the annual audited financial statements for the year-ended December 31, 2025, and other disclosures available under the Company’s profile at www.sedarplus.ca for additional information.
About the Company
Pender Growth Fund Inc is an investment firm. Its investment objective is to achieve long-term capital growth. 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 firm invests in public and private companies principally in the technology sector. It trades on the TSX Venture Exchange under the symbol “PTF” and posts its NAV on its website, generally within five business days of each month end.
Please visit www.pendergrowthfund.com.
For further information, please contact:
Tony Rautava
Corporate Secretary
Pender Growth Fund Inc.
(604) 653-9625
Toll Free: (866) 377-4743
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) 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 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.
