NEWS RELEASE FOR:
STRATEGEM CAPITAL CORPORATION.
VANCOUVER, BRITISH COLUMBIA – November 14, 2007 Strategem Capital Corporation (“Strategem” or “the Company”) announced today that it has recorded a write-down of CAD $2.6 Million on its holdings of Canadian Asset Backed Commercial Paper (“ABCP”). The Company’s ABCP assets have a face value of CAD $6.5 Million.
The Company cites the lack of any secondary market for Canadian non-bank ABCP as a factor in its decision, in addition to the absence of disclosure about the underlying assets. The value the Company ultimately receives for its ABCP assets may differ significantly from Company estimates.
The Company’s ABCP holdings were rated R-1 (high) by Dominion Bond Rating Service (“DBRS”) at the time they were purchased. According to DBRS, short-term debt rated R-1 (high) is of the highest credit quality, and indicates an entity possessing unquestioned ability to repay current liabilities as they fall due.
About Strategem Capital
Strategem Capital Corporation is a publicly-traded merchant bank focused on the development of emerging companies with growth potential. The Company invests in debt and/or equity positions in these companies.
This release and prior releases are available on the Company’s Internet web site located at www.strategemcapital.com.
BY ORDER OF THE BOARD OF DIRECTORS
“Kenneth W. Morgan”
Kenneth W. Morgan, CA, CPA
President, CEO and Director
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.