Matrix Asset Management Inc.

Matrix Asset Management Inc.
Growth Works Capital Ltd.

November 28, 2014 21:04 ET

Growth Works Capital Obtains Additional Secured Debt Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 28, 2014) - Matrix Asset Management Inc. ("Matrix") announces that its subsidiary, Growth Works Capital Ltd. ("GWC"), has obtained an additional loan of $1,009,373 ("Additional Operating Loan") from R.C. Morris & Company Special Opportunities Debt Fund II LP ("Lender") that previously extended to GWC a $5,362,250 million loan announced on October 1, 2013, December 30, 2013 and July 30, 2014 (together with the Additional Operating Loan, the "Entire Loan").

Mr. Christopher Morris is President and CEO of GWC, as well as the principal of the Lender, and President of R.C. Morris & Company Ltd. which provides consulting services to Matrix and certain of its subsidiaries, including GWC.

The Additional Operating Loan matures on December 31, 2018 and bears an interest rate of 12%, payable quarterly. An annual processing fee of 6.5% of the principal amount of the Additional Operating Loan will also be payable quarterly. A structuring and commitment fee of $9,373 was also payable to the Lender at closing. The Lender will also receive, as partial consideration for the Entire Loan, in aggregate approximately 24.0% of incentive payment amounts earned by GWC and related companies from the venture capital funds they manage during the time of the Entire Loan and three years thereafter.

The Entire Loan is secured by the assets of GWC and guaranteed by the assets of Matrix and certain of its non-registrant subsidiaries and certain personal assets of David Levi, Matrix's Chief Executive Officer. In consideration for previous loan advances, the Lender was granted an option to acquire substantially all of the shares of GWC and certain other subsidiaries of Matrix.

Forward-looking statements: Certain statements in this press release are forward-looking statements including the statements about the advance of funds related to the Additional Operating Loan and the exercise of the Option. Forward-looking statements are based on beliefs and assumptions at the time the statements are made. While management considers these beliefs and assumptions to be reasonable based on information currently available to it, they 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 including, but not limited to, risks associated with repaying the Additional Operating Loan and the Entire Loan. Many of these risks are beyond the control of Matrix. 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 or to reflect new information, future unanticipated events or results or other factors.

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