Pender Growth Fund : Q2 2023 – Quarterly Financial Statement

Unaudited Condensed Interim Financial Statements of

PENDER GROWTH FUND INC.

Three months and six months ended June 30, 2023

NOTICE OF NO AUDITOR REVIEW OF THE INTERIM FINANCIAL STATEMENTS

PenderFund Capital Management Ltd., the Manager of the Pender Growth Fund Inc. (the "Company"), appoints an independent auditor to audit the Company' Annual Financial Statements. In accordance with Canadian securities laws (National Instrument 51-102 "Continuous Disclosure Obligations"), the Manager must disclose if an auditor has not reviewed the interim Financial Statements.

The Company' independent auditor has not performed a review of these Interim Financial Statements in accordance with standards established by the Chartered Professional Accountants of Canada.

PENDER GROWTH FUND INC.

Condensed Interim Statements of Financial Position (Unaudited)

			June 30,		December 31,
	Notes		2023		2022
Assets
Cash		$	2,659,321	$	1,552,667
Income taxes receivable	13		3,502,595		3,502,595
Due from related parties	5		3,317,809		3,023,368
Divestment proceeds receivable			74,906		1,916,139
Prepaid expenses			11,248		6,770
Interest receivable			-		162,932
Investments	4, 12		60,574,366		66,299,539
Total assets			70,140,245		76,464,010
Liabilities
Interest payable			16,443		31,864
Share repurchase payable			5,774		13,186
Accounts payable and accrued liabilities			132,297		142,880
Deferred income tax liability	13		908,983		1,536,825
Loan payable	10		2,250,000		4,500,000
Total liabilities			3,313,497		6,224,755
Shareholders' equity
Class C Common shares:
Contributed capital	8		17,281,875		17,442,542
Retained earnings			49,544,873		52,796,713
Total Shareholders' Equity		$	66,826,748	$	70,239,255
Number of shares outstanding	8		7,547,129		7,569,929
Total shareholders' equity per share		$	8.85	$	9.28
Subsequent events	15

The accompanying notes are an integral part of these financial statements.

Approved on behalf of the Board of Directors:

"David Barr"

Director

"Kelly Edmison"

Director

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PENDER GROWTH FUND INC.

Condensed Interim Statements of Comprehensive Income (Unaudited)

				Three months		Three months		Six months		Six months
				ended		ended		ended		ended
		Notes		June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Revenue:
	Interest income (reversal)	6	$	32,551	$	750	$	(107,353)	$	4,392
	Foreign exchange (loss) gain			(3,424)		4,761		(5,173)		(8,819)
	Changes in fair value of investments:
	Net realized gain (loss)			552,658		(3,021,127)		(474,738)		(6,818,928)
	Net change in unrealized depreciation			(146,392)		(62,414,222)		(2,623,705)		(116,239,693)
	Total revenue			435,393		(65,429,838)		(3,210,969)		(123,063,048)
Operating Expenses:
	Administration expenses			170,913		106,558		262,644		230,077
	Management fees	5		161,398		212,661		330,796		452,725
	Interest and financing expenses	10		60,962		68,768		146,042		358,313
	Transaction costs			47,426		4,434		47,998		15,512
	Audit and professional fees			30,035		4,131		69,545		95,840
	Directors' fees			15,788		14,698		28,398		27,283
	Legal fees			6,878		4,896		10,116		17,480
	Custody and recordkeeping fees			3,827		7,459		8,084		15,800
	Total operating expenses			497,227		423,605		903,623		1,213,030
	Net operating loss		$	(61,834)	$	(65,853,443)	$	(4,114,592)	$	(124,276,078)
Other Items:
	Performance fees	5		217,336		(14,623,714)		(350,624)		(26,628,063)
	Fees waived by the Manager	5		(54,334)		3,655,928		87,656		6,657,016
	Net amount			163,002		(10,967,786)		(262,968)		(19,971,047)
	Amount of Pender Private Investments
	Inc.'s ("PPI") performance fee earned by
	the Manager attributable to the
	Company's ownership of PPI shares	5		(302,634)		13,270,570		28,058		24,228,481
	Total performance fee adjustment			(139,632)		2,302,784		(234,910)		4,257,434
Net income (loss) before income taxes (recovery)		$	77,798	$	(68,156,227)	$	(3,879,682)	$	(128,533,512)
Income taxes (recovery)	13				(40,539)				(40,539)
	Current			-			-
	Deferred			36,581		(9,594,231)		(627,842)		(18,149,811)
	Total income taxes (recovery)			36,581		(9,634,770)		(627,842)		(18,190,350)
Net Income (loss)		$	41,217	$	(58,521,457)	$	(3,251,840)	$	(110,343,162)
Net Income (loss), per share:
	Class C shares		$	0.01	$	(7.71)	$	(0.43)	$	(14.52)
Weighted average number of non-redeemable
	Class C shares outstanding			7,550,579		7,588,204		7,558,872		7,597,615

The accompanying notes are an integral part of these financial statements.

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PENDER GROWTH FUND INC.

Condensed Interim Statements of Changes in Equity (Unaudited)

			Six months		Six months
			ended		ended
Class C shares	Note		June 30, 2023		June 30, 2022
Balance, beginning of period		$	70,239,255	$	198,643,655
Net loss			(3,251,840)		(110,343,162)
Capital transactions	8(b)		(160,667)		(468,536)
Balance, end of period		$	66,826,748	$	87,831,957

The accompanying notes are an integral part of these financial statements.

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