US politics, specifically, the rise of protectionism, deregulation and a more disruptive foreign policy stance has heightened uncertainty. It appears the market is being driven by macro developments and headlines. With a high degree of uncertainty and a wider range of potential ramifications on economic growth, inflation and interest rates, we remain focused on our investment process and analyzing new and existing opportunities. 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.

Public equity markets saw positive performance in the second quarter of 2025, although the volatility and drawdown which started in Q1 continued throughout April. Markets digested the possibility of tariff deals and a bottom was reached in April followed by strong May and June performance. The S&P/TSX Composite Index gained 8.5% in the quarter, while the S&P/TSX Small Cap Index added 11.8%. Markets in the US showed strong performance, with the S&P 500 Index (USD) up 10.9% and the small cap Russell 2000 Index (USD) ending 8.5% higher in the quarter. However, due to Canadian dollar appreciation, the S&P 500 Index (CAD) and Russell 2000 Index (CAD) finished up 5.2% and 2.3% respectively in the quarter.

Management Expense Ratio (“MER”) before performance fees was 2.49% for the quarter ended June 30, 2025, 0.16% lower compared to 2.65% in the second quarter of 2024.

At June 30, 2025, 63.4% of the investment portfolio was made up of public companies and 36.6% of private companies and Net Assets were 62.8% publicly listed companies, 36.3% private unlisted companies, and 0.9% cash and other assets net of liabilities.

7,086,329 shares were outstanding as at June 30, 2025 (December 31, 2024 – 7,133,229), a decrease of 46,900 shares as a result of shares repurchase under the NCIB, which was renewed on February 20, 2025.

The Company’s total shareholders’ equity increased by $1,475,840, from $123,081,507 at December 31, 2024 to $124,557,347 as at June 30, 2025, due to net income of $1,955,144 primarily a result of positive investment performance, offset by shares repurchased of $479,304 under the Company’s Normal Course Issuer Bid (“NCIB”).

VANCOUVER, British Columbia, Aug. 22, 2025 (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, 2025.

Story Continues

Investment results may be affected by future developments and new information that may emerge about broad economic conditions, inflation, central bank measures, geopolitical risks, market risk, unexpected judicial or regulatory proceedings and other global events, factors that are beyond the Company’s control.

While macro events have driven investor sentiment, we have remained focused on our bottom-up fundamental research to identify companies that can thrive in a wide range of economic scenarios. We believe that this environment provides compelling opportunities for long-term focused investors and that the Company is well-positioned to continue to pursue its investment objectives.

As always, this quarter we worked closely with our private portfolio companies and certain of our public portfolio companies.

The Company’s subsidiary, Pender Software Holdings Ltd (“PSH”), is a long-term partner to established software businesses that specialize in acquiring and supporting founders and management teams. With a focus on enduring value creation rather than short-term exits, PSH provides operational support, strategic guidance, and patient capital, aiming to help its portfolio companies thrive over time. Performance of the PSH portfolio companies acquired in 2024 has, so far in 2025, generally aligned with expectations. PSH is actively seeking opportunities to acquire software companies as new investments or add-ons to its portfolio of companies in Canada, the United States, and the United Kingdom.

Other Highlights

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. On February 20, 2025, the Company launched a new NCIB, under which the Company may purchase a maximum of 587,342 shares, or 10% of the Company’s public float on launch date, during the one-year period ending February 19, 2026.

We encourage you to refer to the Company’s MD&A and quarterly unaudited financial statements for June 30, 2025, the annual audited financial statements for the year-ended December 31, 2024, 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.