Management is evaluating several strategic options for reducing the Company's working capital deficit and improving the Company's operating results, including acquisitions and possible dispositions of assets or operating divisions that are not generating positive results and re-financing debt obligations.
On February 13, 2013 Matrix and Marquest announced a signed Letter of Intent to pursue a business combination. Management expects the business combination to improve Matrix's working capital position and generate cost savings as the two businesses are integrated and operating synergies are realized. See "Introduction". There can be no assurance that the transaction will be completed on the terms proposed or at all.
It is not possible to predict whether strategic options pursued by Matrix will result in sufficient improvements to Matrix's financial condition to allow Matrix to continue as a going concern. If the going concern assumption ceases to be appropriate, adjustments will be necessary to the carrying amounts and/or classification of Matrix's assets and liabilities. Further, a comprehensive restructuring plan could materially change the carrying amounts and classifications reported in the audited consolidated financial statements. The audited consolidated financial statements do not reflect any such adjustments and do not take into account events or conditions that arose subsequent to December 31, 2012.
Matrix's fourth quarter and year end 2012 financial statements and MD&A available on the SEDAR website at www.sedar.com.
About Matrix (www.matrixasset.ca)
Matrix Asset Management Inc. (TSX: MTA) is a diversified asset and wealth management company, with approximately $1.1 billion in assets under management and offices in four cities across Canada. Matrix's mission is to provide a diverse array of investment choices and the best possible investment management service to Canadian investors and institutions. Matrix delivers its services through three main operating subsidiaries serving institutional, high net worth and retail investors.
Certain statements in this press release are forward-looking statements based on beliefs, assumptions and expectations of the Company and not on historical fact. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Company's financial position and results of operations and to present information about management's current expectations and plans related to future periods. Readers are cautioned against placing undue reliance on forward-looking statements and that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding Matrix's ability to continue to operate as a going concern, future operations, business, financial condition, AUM, financial results, expense reductions, tax refunds, dividends and dividend policies, proposed financings, re-payment, re-financing and/or re-structuring Matrix's financial obligations, managed venture capital fund divestments, targeted acquisitions and other transactions, prospects, opportunities, goals, strategies, accounting policies and estimates and outlook of the Company for the current fiscal year and subsequent periods.
Forward-looking statements include statements that are predictive in nature or depend upon or refer to future events or conditions. Forward-looking statements are based upon beliefs and assumptions of management that were applied in drawing a conclusion or making an estimate, forecast or projection as reflected in the forward-looking statements, including the perception of historical trends and current conditions and beliefs and assumptions with respect to levels of AUM and related assumptions as to levels of portfolio returns and managed fund sales and redemptions, beliefs and assumptions concerning prevailing and future economic and market conditions and the impact of such conditions and other factors on Matrix's AUM and managed portfolio performance, the continuation of portfolio and fund management and advisory engagements, the extent and effectiveness of cost-saving measures and the impact of such measures and other factors on earnings, the outcome of pending and future tax filings, the outcome of litigation, the status of pending transactions and the impact of transactions on Matrix's future operations, the ability of Matrix to re-pay or re-structure financial obligations and remain in compliance with related covenants, tax rates and laws, the ability of managed venture capital funds to generate liquidity, pay management fees when due and satisfy secured payment obligations under financing arrangements, performance of managed venture capital investments relative to carrying values and performance fee return thresholds, the collection of trade receivables and the absence of extraordinary or one-time expenses not currently known to management.
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