May 18, 2012 18:41 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2012) - Matrix Asset Management Inc. (the "Company" or "Matrix") (TSX:MTA) today announced that GrowthWorks WV Management Ltd. ("GWWV"), one of the companies in the Matrix group of companies, has entered into a loan agreement dated May 18, 2012 with an arm's length private company (the "Lender") providing for a term loan in the amount of $4,000,000 (the "Loan").
David Levi, President and CEO of Matrix said, "We consider this loan to be a favorable financing arrangement which will provide flexibility to Matrix in the medium term to assist Matrix in meeting its corporate objectives."
The Loan matures on July 31, 2014 (the "Maturity Date") and is repayable in four installment payments commencing on January 31, 2013 and occurring semi-annually thereafter. The Loan bears interest at an annual rate of 18% per annum until July 31, 2013 and 20% per annum thereafter until the Maturity Date, compounded commencing on the first instalment date and semi-annually on the instalment dates thereafter, payable on the Maturity Date. The Loan is secured by a charge over all present and after-acquired assets of GWWV. Matrix has provided a guarantee of the Loan in favour of the Lender, as has GrowthWorks Ltd., an affiliate of Matrix. The proceeds from the Loan will be used to supplement Matrix's working capital including through the financing of fee accruals with GrowthWorks managed venture capital funds. The managed fund of which the management fees pertain will reimburse the Company for the Loan costs.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, including statements regarding the proposed use of the loan. Forward-looking statements are based upon beliefs and assumptions, including with respect to levels of Matrix's AUM and expenses and related assumptions as to levels of portfolio returns and managed fund sales and redemptions. While management considers these beliefs and assumptions to be reasonable based on information currently available to it, these statements are subject to numerous risks and uncertainties and no assurance can be given that such beliefs and assumptions will prove to be correct. Accordingly, actual results may differ significantly from those expressed or implied by forward-looking statements due to many factors. Readers are cautioned to consider these and other risks, uncertainties and potential events carefully and not place undue reliance on forward-looking statements. Other than as specifically required by law, Matrix undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results or other factors.
About Matrix ([ www.matrixasset.ca ])
Matrix (TSX:MTA) is a diversified asset and wealth management company with approximately $1.6 billion in assets under management and offices across Canada. The Company's mission is to provide a diverse array of investment choices and the best possible investment management service to Canadian investors and institutions. The Company delivers its services through three main operating subsidiaries serving institutional, high net worth, and retail investors.
