Mavrix Fund Management Inc. announced today that it successfully closed the previously announced offering of approximately $3.05 million of 8% convertible unsecured subordinated debentures due June 30, 2010 by way of a private placement.

Mavrix says it intends to use the proceeds to repay outstanding indebtedness and general corporate purposes.

Mavrix says the debentures will bear interest at the rate of 8% per year, payable in cash at the end of each semi-annual period ending June 30 and December 31 in each year, commencing on Dec. 31, 2005.

Each debenture will be convertible at the holder’s option into common shares of Mavrix at any time prior to June 30, 2010 at a conversion price of $3.50 per common share.

McFarlane Gordon Inc. acted as agent in connection with the private placement.

As agent, McFarlane Gordon was paid a cash commission of 7% of the gross proceeds of the offering and was issued compensation warrants exercisable for 150,000 common shares of Mavrix until May 31, 2007 at an exercise price of $3.50 per share.