Mavrix Reports Second Quarter Fiscal 2009 Results

    TORONTO, Aug. 14 /CNW/ - Mavrix Fund Management Inc. ("Mavrix" or the
"Company"), a leading niche asset manager, today announced its financial
results for the three-month period ended June 30, 2009. All results are
reported in Canadian dollars unless otherwise stated.

    Q2 Financial & Operational Summary

    -   Completed Plan of Arrangement where all the outstanding shares of the
        Company were sold to a wholly-owned subsidiary of Growthworks Ltd.
    -   Assets under management ("AUM") improved to $313.8 million from
        $255.6 million at March 31, 2009.
    -   Continued strong performance of the Mavrix Explorer Fund, a natural
        resource fund.
    -   Completed final closing of the initial public offering for Mavrix
        Explore 2009-I Limited Partnership, raising $6.55 million in

    ($ millions - except per share amounts)              Q2 2009     Q2 2008
    Assets under management ("AUM")                       $313.8      $539.1
    Revenues                                                $1.1        $3.0
    Expenses                                                $2.0        $3.2
    Net Loss before unusual item                           $(0.9)      $(0.2)
    Unusual item                                           $(1.1)          -
    Net loss                                               $(2.0)      $(0.2)
    Loss per share                                        $(0.23)     $(0.03)
    EBITDA(*)                                              $(0.5)       $0.5
    EBITDA per share                                      $(0.05)      $0.06
    Shares issued and outstanding                       8,775,458  8,644,706

    "While the fund industry as a whole experienced growth during the second
quarter, the climate remained challenging for managers of equity funds, as
this segment continued to experience net redemptions. Mavrix was not immune to
these challenges," said Mal Spooner, President and CEO of Mavrix. "However,
our AUM improved in the quarter as we generated strong performance in many of
our funds, particularly the Mavrix Explorer Fund."
    "We believe our new partnership with Growthworks will allow us to pursue
our long-term growth strategy with a focus on strong investment performance,
gaining new mandates for funds, and continuing to provide independent support
and advice to nearly 3,000 investment advisors and their clients across

    Financial Review

    Total AUM at June 30, 2009 was $313.8 million, compared with $255.6
million at March 31, 2009 and $539.1 million at June 30, 2008. The increase
was due primarily to improving capital markets. At quarter end, the Company's
AUM consisted of $269.3 million of Mutual Funds and $44.5 million of Specialty
Funds, compared with $409.6 million and $129.5 million, respectively, at June
30, 2008.
    Mavrix Mutual Funds had net redemptions of $1.4 million on gross sales of
$18.6 million for the second quarter of 2009. This compares with $55.4 million
in net redemptions on $10.9 million of gross sales for the same period in
    For the three months ended June 30, 2009, revenue totaled $1.1 million,
compared with $3.0 million for the same period in 2008. The decrease was
primarily the result of the previously noted decline in AUM. Total expenses
for the second quarter were $2.0 million, a 37% decrease from the prior year.
The decline mainly reflects reduced selling, general, administration and other
expenses for the quarter, as management has continued to focus on controlling
    EBITDA declined to $(450,485) for the three months ended June 30, 2009,
compared with $497,308 in the second quarter of 2008. Mavrix reported a net
loss before unusual item for the three months ended June 30, 2009 of $0.9
million, or $(0.10) per share, compared to a net loss before unusual item for
the three months ended June 30, 2008 of $(243,037), or $(0.03) per share. The
Company recorded an unusual item, a loss of $(1.1) million related to the
acquisition of the Company. Net loss for the period was $(2.0) million or
$(0.23) per share.
    The Company's complete financial statements and MD&A will be available at and

    (*) References to EBITDA are to earnings before interest, income taxes,
        depreciation and amortization. EBITDA is not a standardized earnings
        measure under GAAP. Management believes that in addition to net
        earnings, EBITDA is a useful supplemental measure as it provides
        investors with an indication of cash available for distribution,
        income taxes, working capital needs and capital expenditures.
        Investors should be cautioned, however, that EBITDA should not be
        construed as an alternative measure of liquidity and cash flows. The
        Company's method of calculating EBITDA may differ from other issuers
        and, accordingly, EBITDA may not be comparable to similarly titled
        measures used by other issuers.

    About Mavrix Fund Management Inc.

    Mavrix Fund Management Inc. is an asset management company with a focused
lineup 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 advisors and its
clients. Mavrix is headquartered in Toronto with offices in Halifax, Montreal,
and Winnipeg. Additional information about Mavrix can be found at

    Forward-Looking Statements

    This press release contains statements about expected future events and
financial and operating results that are forward-looking and subject to
uncertainties. Actual results, performance or achievement could differ
materially from those expressed or implied by such statements. Such statements
are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Except as required under securities
regulations, Mavrix Fund Management Inc. disclaims any intention or obligation
to update or revise any existing or forward-looking statements, whether as a
result of new information, future events or otherwise.

    %SEDAR: 00020385E

For further information:

For further information: Raymond M. Steele, Chief Financial Officer,
Mavrix Fund Management Inc., (416) 365-4071,; Craig
Armitage, Glen Williams, Investor Relations, The Equicom Group, (416)

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