Ark Fund Management Ltd.

Ark Fund Management Ltd.
Gatehouse Capital Inc.
TSX : GPA.PR.A

Gatehouse Capital Inc.
Redwood Asset Management Inc.

Redwood Asset Management Inc.

October 02, 2009 16:05 ET

Redwood to Acquire Gatehouse Capital

TORONTO, ONTARIO--(Marketwire - Oct. 2, 2009) - Gatehouse Capital Inc. ("Gatehouse")(TSX:GPA.PR.A), a Toronto-based mutual fund and structured product distributor, announced today that it has signed a definitive agreement pursuant to which Redwood Asset Management Inc. ("Redwood") will acquire all of the outstanding shares of Gatehouse.

Gatehouse is currently the Manager of the TIS Preservation & Growth Fund, a mutual fund trust advised by Larry Jeddeloh, the renowned editor of investment newsletter The Institutional Strategist and Managing Director and Chief Investment Officer of Minneapolis, Minnesota-based TIS Group, Inc. Gatehouse is also the manager of Global Credit Pref Corp. a TSX-listed structured product, and Global Credit Trust.

Redwood Asset Management recently completed a merger with Ark Fund Management and the combined entity is emerging as a key consolidator of small asset managers and a valuable partner for established and emerging portfolio managers seeking access to distribution in the Canadian marketplace.

"We have been fortunate that, in addition to strong organic growth, we have had many fruitful conversations with potential acquisition targets and product partners," said Peter Shippen, President of Redwood.

"We look forward to working with the investment advisors and clients that currently support Gatehouse and are excited to introduce Mr. Jeddeloh and his team to a broad range of advisors across Canada," Shippen said.

Effective today, Peter Shippen has joined Gatehouse as a director, replacing Robert Kidd who is stepping down from his position as a director of Gatehouse. There are no day-to-day changes anticipated to the operation of the funds, other than that SciVest Capital Management Inc. will be appointed as the investment advisor of the TIS Preservation & Growth Fund effective on or about closing of the transaction. Larry Jeddeloh of TIS Group will, however, remain as the investment sub-advisor to the fund.

The transaction is expected to close in December 2009, subject to all necessary regulatory approvals and customary closing conditions.

About Redwood Asset Management:

Redwood Asset Management is a Toronto-based investment company specializing in the distribution of mutual funds and alternative investment strategy funds. Redwood offers funds under three distinct brands: Redwood Funds, a performance-oriented fund family; core offerings through the Ark Funds; and Market-Neutral through the SciVest family of Funds.

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