VANCOUVER, Nov. 9, 2016 /CNW/ - (TSXV: PTF) Pender
Growth Fund Inc. (the "Fund") announces that it is redeeming
all of its outstanding Class R senior participating redeemable
convertible preference share ("Class R Shares") at a
redemption price of $4.16 per Class R
Share. The redemptions will be completed on or about
December 9, 2016.
In addition, the Fund announces that it has converted all of its
outstanding Class B convertible non-participating common
shares (the "Class B Shares") into Class R Shares and Class
C participating common shares (the "Class C Shares").
As the result of the conversion, each Class B Share has been
converted into one Class R Share (which will be redeemed on or
around December 9, 2016, as set out
above) and one Class C Share. Holders of Class B Shares and Class R
Shares who have not previously submitted a redemption request will
receive a notice from the Fund containing further details on the
redemptions.
The Fund will use the proceeds from the sale of its largest
portfolio holding, QHR Corporation, to fund the redemptions. The
recent sale of QHR highlights the need to be patient when investing
in early stage companies while value is being created internally,
as well as waiting for the market to recognize this value.
The Fund will continue to operate as a closed-end investment
fund, with the Class C Shares trading on the TSX Venture Exchange
under the symbol "PTF".
David Barr, Executive Officer of
the Fund and President of PenderFund Capital Management Ltd. says
"We are extremely pleased that the sale of QHR has provided the
capital necessary to redeem all outstanding Class B and Class R
Shares. It may have taken longer than we and our investors
would have liked but we view this as a very favourable outcome and
it was only made possible with the support and patience of the
Fund's shareholders. When the Fund was restructured in 2010,
our goal was to make sure each investor was treated equally, and
this redemption fulfills this goal."
Moving forward, the Fund is uniquely positioned to make
investments that were previously not possible since the Fund will
no longer have redemptions to meet. This provides the Fund
with a structural advantage to invest in illiquid securities or
securities where it may take longer for value to surface.
Patience is a big advantage in a world dominated by headlines and
social media. The Fund has also been deregistered from the VCC
program and in so doing, has increased flexibility in the types of
investments it can make. Under the VCC program, the Fund was
required to invest solely in treasury shares of B.C. based
companies with under 100 employees. Going forward, we plan to
invest in the best opportunities that we can find, without the
restrictions of the VCC program.
"We will continue to make investments in early stage technology
companies. Growing, profitable software companies are
favourites of ours but at the end of the day we are
opportunistic. We are highly aligned with the Funds
shareholders as we personally own a significant portion of the
Fund's shares. Our goal is to increase the NAV on a per share basis
for as long as I am capable," says David
Barr.
About the Fund
The Fund is a closed-end investment
fund with a goal of increasing net asset value per share over an
extended period of time. The Fund accesses unique situations within
its circle of competence, and the Fund's ability to invest in less
liquid opportunities is a structural advantage we plan to
utilize.
SOURCE PenderFund Capital Management Ltd.
