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Mavrix Fund Management Inc. Announces Closing of Acquisition by Growth Works Ltd.

^{Published on 2009-07-01 13:52:17, Last Modified on 2009-07-01 13:52:23 - Market Wire}
 

 TORONTO, July 1 /CNW/ - Mavrix Fund Management Inc. (TSX:MVX) ("Mavrix" or the "Company") is pleased to announce that Mavrix has obtained final court approval for, and effective June 30, 2009 completed the previously announced plan of arrangement under which 1796862 Ontario Ltd., a wholly-owned subsidiary of GrowthWorks Ltd., has acquired all of the Company's common shares (the "Common Shares") for $0.25 per share in cash. It is expected that the Common Shares will be de-listed from the Toronto Stock Exchange later this week or early next week. As previously announced, the publicly listed 8% convertible debentures will also be de-listed from the Toronto Stock Exchange within the next week and the Company has applied for listing of those debentures on the Canadian National Stock Exchange. Mavrix also wishes to announce related amendments to its $6 million 10% subordinated debenture. The amendments include an extension of the maturity date of the debenture from July 2, 2011 to a staged maturity with principal repayments on each of July 2, 2012, 2013 and 2014. Mavrix may further extend the first two payments, subject to a 1.5% interest rate increase on the extended amount. The interest rate under the debenture has been re-set at 8.0% per annum for the first year, 9.33% for the second year and 10.0% for the third year. 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 ]. About GrowthWorks ([ www.growthworks.ca ]) -------------------------------------- GrowthWorks(TM) managed funds provide investment capital for Canadian companies and tax-advantaged investment opportunities for Canadian investors. GrowthWorks manages approximately $700 million in assets through the Working Opportunity Fund (EVCC) Ltd., GrowthWorks Atlantic Venture Fund Ltd., GrowthWorks Commercialization Fund Ltd. and GrowthWorks Canadian Fund Ltd. GrowthWorks identifies, analyzes and structures investments in companies with high growth potential. Particular emphasis is placed on IT, Life Sciences and Cleantech sectors. Building on more than 17 years of investment expertise, GrowthWorks is a leader in Canadian venture capital management. GrowthWorks refers to affiliates of GrowthWorks Ltd. and includes: GrowthWorks Capital Ltd. manager of the Working Opportunity Fund (EVCC) Ltd.; GrowthWorks WV Management Ltd., manager of GrowthWorks Canadian Fund Ltd. and GrowthWorks Commercialization Fund Ltd.; GrowthWorks Atlantic Ltd., manager of GrowthWorks Atlantic Venture Fund Ltd. and 1796862 Ontario Ltd. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd. 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 the de-listing of the Shares and debentures from the Toronto Stock Exchange and the listing of the Debentures on the Canadian National Stock Exchange. 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: Mavrix Fund Management Inc. at (416) 362-3077, 1-888-964-3533 or [ www.mavrixfunds.com ]; Murray Munro of GrowthWorks Capital Ltd. at (604) 895-7282