Mr. Tony Rautava reports

PENDER GROWTH FUND PROVIDES FINANCIAL HIGHLIGHTS AND COMPANY UPDATES

Pender Growth Fund Inc. today released its financial and operational results for the three months and nine months ended Sept. 30, 2023.

Financial highlights (unaudited)

• Net loss was $97,003 for the three months ended Sept. 30, 2023 (Sept. 30, 2022 -- net loss $8,520,121), primarily the result of negative investment performance in the quarter
• Net loss per Class C common share for the three months ended Sept. 30, 2023, was one cent (Sept. 30, 2022 -- net loss per share $1.12).
• The company's total shareholders' equity decreased by $253,874 for the three months ended Sept. 30, 2023, primarily due to share repurchases of $156,871 under the company's normal course issuer bid (NCIB) and a net loss of $97,003, primarily the result of negative investment performance during the quarter.
• shareholders' equity per share was $8.85 as at Sept. 30, 2023 (Dec. 31, 2022 -- $9.28).
• The company's total shareholders' equity was $66.6-million as at Sept. 30, 2023, a decrease from Dec. 31, 2022 ($70.2-million) resulting primarily from negative investment performance for the nine months ended Sept. 30, 2023.
• shares outstanding were 7,524,629 as at Sept. 30, 2023, a decrease from Dec. 31, 2022 (7,569,929), as a result of share repurchases under the NCIB, which was renewed on Feb. 14, 2023.
• At Sept. 30, 2023, 85.9 per cent of the investment portfolio was made up of private companies and 14.1 per cent of public companies. However, taken together with the company's indirect exposure to public companies through its investment in Pender Private Investments Inc. (PPI) and Pender Technology Inflection Fund II LP (PTIF II), public companies make up 68.8 per cent of the company's holdings.
• Management expense ratio (MER) before performance fees was 2.45 per cent for the quarter ended Sept. 30, 2023, up 0.10 per cent compared with 2.35 per cent in the third quarter of 2022.

The company's portfolio is materially concentrated in the shares of one publicly listed portfolio company, Copperleaf Technologies Inc. At Sept. 30, 2023, considering both its direct investment and its indirect investment through its holding of shares of PPI, the company held 6,889,883 shares of Copperleaf with a value of $38.9-million, which was 58.5 per cent of the company's total shareholders' equity of $66.6-million (Dec. 31, 2022 -- 6,762,065 shares with a value of $38.8-million which was 55.3 per cent of the company's total shareholders' equity of $70.2-million). As at Sept. 30, 2023, Copperleaf's trading price was at $5.65 per share, down nine cents per share from its Dec. 31, 2022, closing price of $5.74 per share. There can be no assurance that the company will be able to realize the value of this investment.

Portfolio highlights

During the third quarter, overall market sentiment was more challenging, with equities and risk assets broadly lower over the period. With the peak in inflation nearing or behind us and central banks slowing and, in some cases, pausing, their interest rate raising campaigns, the focus has turned to apprehension about future economic growth and the lag effect of tighter financial monetary conditions brought about by higher interest rates. The company thinks this will remain in focus with concern from investors that tighter financial conditions will impact spending habits and that a recession is on the horizon.

Pender believes that the company continues to be well positioned today to pursue its investment objectives despite current market volatility and valuations in micro- and small-cap stocks in North America.

Investment results may be affected by future developments and new information that may emerge about inflation and the impact of central bank measures and geopolitical and other global events, factors that are beyond the company's control.

While macro events have driven investor sentiment, the company has remained focused on its bottom-up fundamental research to identify companies that can thrive in a wide range of economic scenarios. Pender believes 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 the company worked closely with its private portfolio companies and certain of its public portfolio companies.

Significant equity investments and recent developments

Pender Private Investments

At Sept. 30, 2023, the company held 100 per cent of the legacy shares of PPI, formerly the Working Opportunity Fund (EVCC) Ltd. (WOF). These shares were acquired in May, 2021, from shareholders of WOF (exiting shareholders) under the previously announced transaction (the WOF transaction) and in transactions subsequent to May, 2021.

During the period, after receiving approval from the PPI shareholders, a satisfactory fairness opinion and court approval, the company acquired the remaining 2 per cent of PPI's legacy shares at a purchase price $6.94 per share for a total cash purchase price of $855,490, effective Aug. 17, 2023.

Copperleaf Technologies

At Sept. 30, 2023, the company held 9.4 per cent of Copperleaf's issued and outstanding shares, both directly and through its investment in PPI. The value of the company's direct and indirect holdings of Copperleaf was $38.9-million at Sept. 30, 2023, which was 58.5 per cent of the company's total shareholders' equity.

Other highlights

The company continued to acquire shares of the company in the market under its NCIB because Pender believes the shares are trading at a discount to their intrinsic value. On Feb. 14, 2023, the company launched a new NCIB, under which the company may purchase a maximum of 663,045 shares, or 10 per cent of the company's public float on launch date, during the one-year period ending Feb. 13, 2024.

Pender encourages you to refer to the company's MD&A (management's discussion and analyis) and quarterly unaudited financial statements for Sept. 30, 2023, the annual audited financial statements for the year ended Dec. 31, 2022, and other disclosures available under the company's profile at SEDAR+ for additional information.

About Pender Growth Fund Inc.

Pender Growth Fund 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 based primarily in Canada and the United States, principally in the technology sector. It trades on the TSX Venture Exchange under the symbol PTF and posts its NAV (net asset value) on its website, generally within five business days of each month-end.

We seek Safe Harbor.