Pender Growth Fund Provides Financial Highlights and Company Updates - Seite 2

As at March 31, 2023, Copperleaf’s trading price was at $5.50 per share, down $0.24 per share from its December 31, 2022 closing price of $5.74 per share. This decrease resulted in the unrealized loss that was one of main factors in the decrease of the Company’s total shareholders’ equity to $66.8 million ($8.85 per share) at March 31, 2023. There can be no assurance that the Company will be able to realize the value of this investment.

Portfolio Highlights

The first quarter of 2023 saw a continuation of the market challenges that started in early 2022. Geopolitical uncertainty, elevated inflation and rising interest rates have all contributed to a slower economic growth outlook as we entered the year. With the peak in inflation likely behind us and central banks slowing and in some cases pausing their interest rate raising campaigns, the focus has turned to growth and the lag effect of tighter financial conditions. We believe 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.

The economic uncertainties around persistent inflation pressure, bank failures, geopolitical events and the lingering COVID-19 pandemic continue to impact the global economy. 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.

Significant Equity Investments & Recent Developments

Pender Private Investments Inc.

At March 31, 2023, the Company held approximately 98% 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.

On May 23, 2023, PTF and PPI signed a non-binding letter of intent for PTF to purchase all of PPI’s Legacy Shares that are held by the 2% minority shareholders (the “Minority Shareholders”). It is proposed that PTF acquires the shares held by the Minority Shareholders under a plan of arrangement, at a price equal to 100% of the NAV in effect five business days before the execution of the definitive agreement (the “Purchase Price”). The Purchase Price will be recalculated five business days prior to the closing of the proposed transaction and will be adjusted up or down to a maximum of five percent based on the updated calculation. Completion of the proposed transaction remains subject to, among other things, the negotiation of a definitive agreement, approval of the PPI shareholders (including majority of the minority approval), receipt of a satisfactory Fairness Opinion and court approval. The proposed transaction is anticipated to close in Q3 of 2023.