The board of directors of Mavrix Fund Management Inc. has approved the borrowing of up to $5 million under two credit facilities, the company said Tuesday.

The purpose the credit facilities — a bank credit facility, and a credit facility funded by Growth Works Ltd. — is to enable Mavrix to access additional financing for the operation of its business.

The bank facility will be established with a bank on terms typical for bank credit facilities to corporations of the size and financial condition of Mavrix at the best rate of interest obtainable from the bank, the company says.

The GrowthWorks funded credit facility will bear interest at the rate of prime plus 2% per year from the date on which Mavrix becomes operating cash flow positive. The advances will become and due payable in the ordinary course on July 14, 2011.

As previously announced, a wholly owned subsidiary of GrowthWorks Ltd. acquired all of the common shares of Mavrix through a plan of arrangement transaction completed on June 30.

The initial advance of the borrowing occurred on July 13.

IE