Pender Growth Fund Portfolio Company, General Fusion, Announces a Proposed Business Combination

Core Viewpoint - General Fusion Inc. has entered into a definitive business combination agreement with Spring Valley Acquisition Corp. III, which is expected to lead to General Fusion's listing on Nasdaq under the ticker symbol "GFUZ" [1][2]. Group 1: Proposed Business Combination - The business combination is anticipated to be completed in mid-2026, subject to regulatory and shareholder approvals [2]. - The proposed combination implies a pro-forma equity value of approximately US$1 billion, including US$100 million from committed financing and US$230 million from SVAC's trust capital [2]. - If completed, the net asset value (NAV) of Pender Growth Fund Inc. (PTF) is expected to increase by approximately CAD$27.3 million, translating to about CAD$3.93 per PTF share [2]. Group 2: General Fusion's Technology and Goals - General Fusion has developed a large-scale Magnetized Target Fusion (MTF) demonstration machine, Lawson Machine 26 (LM26), which positions the company at the forefront of fusion technology [3]. - The company plans to use the proceeds from the transaction with SVAC to advance the LM26 program and achieve key technical milestones towards commercial fusion [3]. - General Fusion aims to provide a practical solution for clean and cost-effective energy, anticipating a 40% to 50% increase in energy demands by 2035 according to the International Energy Agency [3]. Group 3: Industry Perspective - The long-term potential of nuclear fusion is viewed as critical for future industrial infrastructure, aligning with investment themes of energy transition and the demands of artificial intelligence and digital infrastructure [4]. - As the energy requirements of the digital economy grow, fusion is expected to become essential infrastructure for energy security and the broader energy transition [5].