Maximus Comments on Status of Short-Term Investments
Monday August 20, 6:26 pm ET
LONGUEUIL, QUEBEC--(Marketwire - Aug. 20, 2007) - Maximus Ventures Ltd. ("Maximus") (TSX VENTURE:MXV - News) advises on the impact of recent disruptions in global credit markets on $4.8 million of its $5.4 million in cash and short-term investments. The amount of $4.8 million was invested in Canadian asset-backed commercial paper ("ABCP"). The remaining $0.6 million is held in cash not affected by this situation.
Maximus' portfolio of short-term investments meets the criteria of its investment policy and was invested on the basis of professional advice from a major financial institution. The Company invested $0.8 million in Ironstone Trust E, $2 million in Rocket Trust E and $2.0 million in Appsley Trust E. Each of these instruments matured last week but their maturities were not met and they remain outstanding.
The Company's ABCP investments were all rated R1-High (highest rating available for short-term commercial paper) by the Dominion Bond Rating Service ("DBRS") at the time they were purchased. While the DBRS announced last week that the investments are under review, the DBRS has rated the above trusts and their underlying assets as R1-High.
A consortium representing banks, asset providers and major investors have agreed in principle to take significant steps to re-establish normal operations in the market for Canadian asset-backed securities. These steps include all investors in such ABCP issuers to exchange their holding in each issuer for long-term note on an individual issuer and series basis. The term of the note would match the term of the assets within that ABCP issuer and series. The Company continues to monitor these developments.
Maximus currently believes that it has sufficient cash available to meet its short-term financial obligations. The Company is also working to have in place a line of credit as a short-term solution to this situation and will provide additional information shortly.
Forward-looking Statements
This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.
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