Vancouver, BC, May 11, 2005--PenderFund Capital Management Ltd. announced the Fund’s investment of $500,000 in common shares of IP Applications Corp., on the terms described in the Company's news release dated May 2, 2005. The Fund invested $500,000 at $0.33 per share for 1,515,150 common shares. Pender surrendered 1,515,150 of its existing IP Apps warrants and received 1,515,150 warrants, with each warrant entitling the holder to purchase an additional common share of the Company at $0.35 for the first year and $0.40 for the second year after issuance.
David Roberts said, "This financing provided the opportunity for Pender Growth Fund to increase its position in IP Apps, and further support the Company in the second stage of the reorganization that was initiated in March 2004."
As a result of this financing, the Fund has ownership of and control over 4,198,483 common shares (representing 35.2% of the Company's 11,924,326 outstanding common shares), including 333,333 common shares that were issued (on a post-consolidated basis) upon the exercise of the Cashless Put Warrants that were granted to the Fund on December 22, 2004. The Fund also holds warrants entitling it to purchase an additional 1,850,000 common shares of the Fund which, if exercised in full, would result in the Fund owning and controlling a total of 6,048,483 common shares representing 43.9% of the Company's 13,774,326 outstanding common shares.
About IP Applications Corp.
IP Applications delivers web services, applications, and support, developed for large-scale providers, designed for individual users. The combination of carrier-grade facilities, mass provisioning capabilities and dedicated technical and sales professionals makes IP Applications a trusted strategic partner to Telecoms, Enterprises and BPL providers. The 24/7 multilingual help desk offers clients and their subscribers a value-added complement to a wide variety of IP products and services such as network monitoring and OSS.
About Pender Growth Fund (VCC) Inc.
Pender Growth Fund (VCC) Inc. is an established, diversified venture capital fund that invests in technology companies within the province of British Columbia with the objective of long-term capital appreciation. Pender Growth Fund is now the first fund of its kind in British Columbia to focus specifically on expansion and restructuring opportunities within the technology sector that offer investors the potential for liquidity through either existing public listings or near term liquidity events. The Fund has approximately $16 million of assets under management.
Contact
For further information please contact:
Pender Growth Fund (VCC) Inc.
David Roberts, President & CEO
PenderFund Capital Management Ltd.
Tel: (604) 688-1511
Toll Free: 1 866 377-4743
droberts@penderfund.com
www.penderfund.com
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