GrowthWorks Capital Ltd.

GrowthWorks Capital Ltd.

July 02, 2009 18:44 ET

GrowthWorks(i) Increases Managed Funds Position in Spectral Diagnostics Inc. Through Acquisition of Mavrix Fund Management Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 2, 2009) - As previously announced, effective June 30, 2009, 1796862 Ontario Ltd., a wholly-owned subsidiary of GrowthWorks Ltd., completed the acquisition of all of the common shares of Mavrix Fund Management Inc. ("Mavrix") through a plan of arrangement transaction (the "Arrangement").

Mavrix is the manager of the Mavrix Mutual Funds which collectively hold 1,945,100 common shares of Spectral Diagnostics Inc. ("Spectral") representing approximately 8.06% of the issued and outstanding common shares of Spectral.

As a result of the Arrangement, investment funds managed by GrowthWorks now collectively own 6,429,092 common shares of Spectral representing approximately 26.66% of the issued and outstanding common shares of Spectral, which represents an increase of approximately 8.06%. In addition, GrowthWorks Canadian Fund Ltd. ("Canadian Fund"), an investment fund managed by GrowthWorks, holds (i) warrants that entitle it to acquire a further 462,500 common shares of Spectral at a price of $0.47 per share until June 19, 2011 (the "Warrants") and (ii) $2,312,500 principal amount of non-interest bearing, unsecured convertible notes (the "Notes"), which can be repaid by Spectral in cash or by the issue of common shares of Spectral, subject to regulatory approvals. The conversion factor is derived from the average market price of Spectral during the preceding 60 trading days less a 15% discount. If converted on the date of the Arrangement, Canadian Fund would receive an additional 11,963,011 common shares. As of the date of the Arrangement, if the Warrants were fully exercised and the Notes fully converted, investment funds managed by GrowthWorks would hold 18,854,603 common shares, representing approximately 51.59% of the issued and outstanding common shares of Spectral.

The securities are being held for investment purposes. Although it is not anticipated at this time, investment funds managed by GrowthWorks Capital Ltd. and its affiliates may make further purchases of securities of Spectral for investment purposes only.

About GrowthWorks (www.growthworks.ca)

GrowthWorks™ 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.

(i) 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.; 1796862 Ontario Ltd. and Mavrix Fund Management Inc. manager of the Mavrix Mutual Funds and other specialty funds. GrowthWorks is a registered trademark of GrowthWorks Capital Ltd.

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.

For further information: contact Mavrix Fund Management Inc. at 416-362-3077 or 1-888-964-3533.

Contact Information

  • GrowthWorks Capital Ltd.
    Murray Munro, Senior Vice President,
    National Sales, Marketing & Government Relations
    604-895-7282
    www.growthworks.ca