VANCOUVER, July 8, 2013 /CNW/ - Pender Growth Fund (VCC) Inc. (the "Fund"), is providing an update with respect to one of the investments held in the Fund.
D-Wave Systems recently announced that it had sold its latest generation computer to a collaboration among NASA, Google and the Universities Space Research Association (USRA). It disclosed that installation of its new 512-qubit quantum computer, the D-Wave Two, had already begun with a view to going online in Q3. The news was picked up by media outlets around the world. At the recent Annual General Meeting, management explained that this sale is evidence that quantum computing has expanded beyond the theoretical realm and into the worlds of business and technology.
D-Wave has also hired several new management people including a new President of its US subsidiary responsible for sales and a new Chief Financial Officer with high level experience with NASDAQ public offerings.
It is our view that these developments signal significant value creation for D-Wave. Although we have no way of ascertaining a specific amount, we now believe that the value of the Fund's investment in D-Wave may be significantly in excess of book value. While we do believe that the company is creating value for its investors, we have no way of knowing if a liquidity event such as a take-over or an initial public offering (IPO), generating returns for the Fund, is a short, medium or long term possibility.
The Fund currently owns approximately 1% of the equity of D-Wave. There are numerous classes of shares of D-Wave held by investors many of which have superior rights to those held by the Fund.
About D-Wave Systems Inc.
Founded in 1999, D-Wave's mission is to integrate new discoveries in physics and computer science into breakthrough approaches to computation. The company's flagship product, the 512-qubit D-Wave TwoTM computer, is built around a novel type of superconducting processor that uses quantum mechanics to massively accelerate computation. The NADA/Google/USRA installation markets a significant broadening of D-Wave's customer base, and comes on the heels of Lockheed-Martin's purchase of an upgrade of their 128-qubit D-Wave OneTM system to a 512-qubit D-Wave Two earlier in this year. With headquarters near Vancouver, Canada, the D-Wave U.S. offices are located in Palo Alto, California. D-Wave has a blue-ship investor base including Bezos Expeditions, Business Development Bank of Canada, Draper Fisher Jurvetson, Goldman Sachs, Growthworks, Harris & Harris Group, In-Q-Tel, International Investment and Underwriting, and Kensington Partners Limited. For more information, visit: www.dwavesys.com or learn more at www.youtube.com/user/dwavesystems.
On behalf of:
Pender Growth Fund (VCC) Inc.
Chief Executive Officer
SOURCE: PenderFund Capital Management Ltd.
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