Strategem Capital Corporation

Strategem Capital Corporation

November 14, 2007 09:00 ET

Strategem Writes Down ABCP Holding

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2007) -

Strategem Capital Corporation ("Strategem" or "the Company") (TSX VENTURE:SGE) announced today that it has recorded a write-down of CAD $2.6 Million on its holdings of Canadian Asset Backed Commercial Paper ("ABCP"). The Company's ABCP assets have a face value of CAD $6.5 Million.

The Company cites the lack of any secondary market for Canadian non-bank ABCP as a factor in its decision, in addition to the absence of disclosure about the underlying assets. The value the Company ultimately receives for its ABCP assets may differ significantly from Company estimates.

The Company's ABCP holdings were rated R-1 (high) by Dominion Bond Rating Service ("DBRS") at the time they were purchased. According to DBRS, short-term debt rated R-1 (high) is of the highest credit quality, and indicates an entity possessing unquestioned ability to repay current liabilities as they fall due.

About Strategem Capital

Strategem Capital Corporation is a publicly-traded merchant bank specializing in the development of emerging companies with above average growth potential. The current focus is on companies that explore and develop precious or base metals.

This release and prior releases are available on the Company's Internet web site located at


Kenneth W. Morgan, CA, CPA, President, CEO and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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