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Mavrix Fund Management Inc. Provides Update Concerning Acquisition by Growth Works Ltd.

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^{Published in Business and Finance on Friday, June 12th 2009 at 10:14 GMT, Last Modified on 2009-06-12 10:15:54 by Market Wire}  

 TORONTO, June 12 /CNW/ - As previously announced, Mavrix Fund Management Inc. (the "Company") (TSX: MVX), Growth Works Ltd. and a wholly-owned subsidiary of Growth Works Ltd. (the "Purchaser") have entered into an Arrangement Agreement pursuant to which the Purchaser will acquire by way of Plan of Arrangement all of the issued and outstanding common shares (the "Shares") of the Company for $0.25 in cash per Share subject to, among other things, shareholder and final Court approval (the "Arrangement"). The Arrangement is expected to be effective on or about June 30, 2009. As previously disclosed, upon completion of the Arrangement, the Shares will be delisted from the TSX, as the Company will no longer meet the minimum listing requirements for the shares. In addition, as previously disclosed, the 8% convertible debentures (the "Debentures") issued pursuant to the indenture dated May 1, 2005 will remain outstanding. In order to maintain liquidity for the Debentures, the Company had sought to continue the listing of the Debentures. While the Company has now been advised that the Debentures will no longer be listed on the TSX following implementation of the Arrangement, the Company has made application to list the Debentures on the Canadian National Stock Exchange (the "CNSX"). The Company will publicly announce whether the application is successful and if successful, when trading on the CNSX will commence. The Company will also remain a reporting issuer under the securities legislation of each of the provinces and territories in Canada under which it is currently a reporting issuer, or equivalent. The terms of the Debentures are unaffected by the Arrangement as holders of Debentures are not subject to the Plan of Arrangement. Accordingly, under the terms of the Debentures, a holder may convert the Debentures into Shares at a price of $3.50 per Share. This conversion price is significantly higher than the volume weighted average trading price of the Shares for the 30-day period prior to the announcement of the Arrangement, which was $0.18. About Mavrix Fund Management Inc. Mavrix Fund Management Inc. (TSX: MVX) is an asset management company founded and operated by experienced portfolio managers. The company offers a focused line-up of concentrated, actively managed funds that aim to complement mainstream funds. Mavrix supports its products by providing financial advisors with regular and direct access to portfolio managers and unbiased commentary, which has enabled the company to become a trusted advisor to its clients. Mavrix is headquartered in Toronto with offices in Halifax, Montreal and Winnipeg. Additional information about Mavrix can be found at [ www.mavrixfunds.com ]. Certain statements contained herein constitute "forward-looking statements". These forward-looking statements are based on current expectations and involve known and unknown risks, uncertainties and other factors. Material factors and assumptions that were applied in making the forward-looking statements and that could cause actual results to differ materially from the forward-looking statements in this release include risks and uncertainties relating to: conditions set out in the interim order to be obtained in connection with the Plan of Arrangement, satisfaction of the conditions set out in the Arrangement Agreement, negotiation of a satisfactory amendment with a lender to the Corporation to permit completion of the Transaction, and receipt of all regulatory and required shareholder approvals. Readers are cautioned not to place undue reliance on these statements as actual results may differ materially from any future results expressed or implied by such forward-looking statements, if known or unknown risks, uncertainties or other factors affect the Transaction, the Company or its business. The Company cannot provide any assurance that forward-looking statements will materialize. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. %SEDAR: 00020385E 

For further information: contact Mavrix Fund Management Inc. at (416) 362-3077, 1-888-964-3533 or [ www.mavrixfunds.com ]