VANCOUVER, Aug. 10, 2015 /CNW/ - (TSX-V: PTF) Pender Growth Fund (VCC) Inc. (the "Fund") is pleased to announce the acquisition of one of its largest holdings, as well as details of the consequent redemption of certain of its Class B and Class R Preferred shares.
Sale of Monexa
The Fund has completed the sale of its interest in Monexa Services Inc. ("Monexa"), netting the Fund aggregate cash proceeds of $4.3 million at closing. The Fund may also receive up to an additional $0.8 million to be held in escrow for 15 months.
Monexa's acquirer, Netsuite Inc. (www.netsuite.com) is a global provider of cloud-based enterprise ERP/financial, CRM, ecommerce and inventory solutions, with revenue in excess of US$500 million and a market cap of US$7 billion. Netsuite's interest in Monexa is centered on Monexa's subscription commerce platform, which allows businesses to efficiently manage complex product and service billing requirements. Netsuite will integrate Monexa's billing platform into its enterprise suite of cloud based solutions.
In addition to the technology, Netsuite placed a high value on Monexa's team. Substantially all of Monexa's employees have now joined Netsuite, and Monexa's Vancouver office will become the Netsuite centre of excellence for its subscription billing solution. As such, the transaction is good news for both the Fund and the local technology industry.
Kelly Edmison, Chairman of the Fund's Board of Directors, said, "Monexa was an important investment for us. We held it for a long time. This sale proves that in the venture business it is important to be patient and determined. We are very pleased that the company has been able to achieve such a good result. This would not have been possible without the remarkable talents and dedication of many people over the years. We would particularly like to thank Curt Cranfield, Mark Sampson, Darren Dumba, Rich Topham, Neil McDonnell, John Jacobson, Garry Rasmussen, Jayson Grant, Garth Albright, Barry Yates and Bill Schonbrun, all of whom were instrumental in the company's successes."
The Fund will use $2.8 million of these proceeds to honour outstanding redemptions. All outstanding redemption requests submitted in 2012 will be honoured as to 100% and redemption requests submitted in 2013 will be honoured as to 50%. Pender expects to process these redemptions on or around August 31, 2015.
The remaining portion of the 2013 redemptions and any subsequent redemptions will be honoured as soon as another liquidity event takes place that nets sufficient proceeds to the Fund. Although we cannot predict when this event will take place, several of the Fund's investments could be sold within the next 12 months.
This brings the total amount of redemptions that have been honoured to $17.8 million. After the redemptions announced in this release are paid, there will be total of $3.3 million of requested redemptions left outstanding and $3.0 million of unrequested redemptions. All outstanding Class B and Class R shares are now eligible for redemption.
SOURCE Pender Growth Fund (VCC) Inc.
For further information: Melanie Moore, (604) 688-1511, Toll Free: (866) 377-4743; On behalf of: Pender Growth Fund (VCC) Inc., "J. Kelly Edmison", Chairman