Pender Growth Fund Provides Financial Highlights and Company Updates

VANCOUVER, British Columbia, Aug. 21, 2026 (GLOBE NEWSWIRE) -- (TSXV: PTF) Pender Growth Fund Inc. (the “Company”) today announced its financial and operational results for the three months and six months ended June 30, 2026.

Financial Highlights

• Net income was $7,241,975 for the three months ended June 30, 2026 (June 30, 2025 – net income of $8,742,446) due to positive investment performance in the quarter.
• Net income per Class C common share (“Share”) was $1.05 for the three months ended June 30, 2026 (June 30, 2025 – net income per Share of $1.23).

• The Company’s total shareholders’ equity increased by $5,723,403, from $115,404,324 as at December 31, 2025 to $121,127,727 as at June 30, 2026. This increase was primarily due to a net income of $6,713,853 as a result of positive investment performance, offset by $990,450 of shares repurchased under the Company’s Normal Course Issuer Bid (“NCIB”).
  • Shareholders’ equity was $17.64 per Share as at June 30, 2026 (December 31, 2025 – $16.65).
  • 6,867,629 Shares were outstanding as at June 30, 2026 (December 31, 2025 – 6,933,229), representing a decrease of 65,600 Shares as a result of share repurchases under the NCIB, which was renewed on February 20, 2026.
  • As at June 30, 2026, 38.3% of the investment portfolio was comprised of publicly listed companies and 61.7% of private companies. Net assets were comprised of 38.2% in publicly listed companies, 61.6% in private unlisted companies, and 0.2% in cash and other assets, net of liabilities.
  • Management Expense Ratio (“MER”) before performance fees was 2.70% for the quarter ended June 30, 2026, an increase of 0.21% compared to 2.49% in the second quarter of 2025.
    

Portfolio Highlights   

During the second 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 Q2 2026 rebounded sharply, driven by robust corporate earnings, continued investment in the AI supply chain, and recovery from the geopolitical shocks of earlier in the year. Still, volatility has defined 2026, rooted in three overlapping pressures: an energy supply shock, re-accelerating inflation, and a "higher-for-longer" monetary policy regime. All three suggest volatility is likely to carry into Q3.

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.

Turning to the M&A environment, we continue to see activity pick up across small- and mid-cap names. We view this as an important signal: private markets are beginning to recognize value in the public small- and mid-cap space, where valuations have remained disconnected from long-term fundamentals. This backdrop represents a meaningful tailwind, with the potential to surface and unlock value in underappreciated portfolio companies.

One notable example was Kneat's June 8, 2026 announcement that it had entered into a definitive agreement to be acquired by Thoma Bravo for $6.50 per share in cash, representing a premium of approximately 20% to the previous closing price and 40% to the unaffected share price prior to the commencement of its strategic review process. We believe this transaction underscores two key themes: the continued undervaluation of small-cap technology companies and the strong level of M&A activity across the sector.

For the six months ended June 30, 2026, the Company recorded a net increase in unrealized appreciation of $4,717,870, of which $4,062,454 was attributable to its investment in Kneat. Subsequent to quarter-end, the acquisition was completed and the Company fully exited its position, realizing a gain of approximately $4 million. As of the date of this news release, approximately 7% of the Company's net assets are held in cash, providing flexibility to capitalize on future investment opportunities.

The Company remained actively engaged with key portfolio companies during the quarter, including General Fusion Inc., a long-standing private holding. On July 10th, General Fusion completed its business combination with Spring Valley Acquisition Corp. III, and the combined entity was renamed General Fusion Group Ltd., with shares and warrants commencing trading on the Nasdaq on July 13th under "GFUZ" and "GFUZW." The listing marks General Fusion's transition from a long-held private position to a publicly traded holding, and comes on the heels of the company's 8.4 million degree Celsius plasma heating milestone announced the prior month, a step we view as meaningful validation of fusion's path toward commercial relevance amid accelerating electricity demand from AI and electrification. This development represents and highlights the Company's ability to identify, support, and patiently hold transformational private companies as they advance toward corporate milestones.

Other Highlights

The Company continued to acquire its Shares 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 June 30, 2026, the annual audited financial statements for the year-ended December 31, 2025, and other disclosures available under the Company’s profile at http://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 expected market volatility, the merger and acquisition environment and its potential impact on the Company's portfolio, and the potential for value realization from the Company's portfolio companies, including General Fusion Group Ltd. 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 http://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.