November 12, 2008
CLX Medical, Inc. CEO Comments on Anticipated Close of Acquisition of the ThyroTest(R) Rapid Screening Device
CLX Medical, Inc. (OTCBB: CLXN), which is focused on the marketing and distribution of unique medical diagnostic testing products, today issued a comment from Vera Leonard, chief executive officer of the company, regarding the recent disclosure that CLX expects to close the acquisition of the ThyroTest(R) product through the issuance of preferred stock and a note in the amount of $750,000.
ThyroTest(R) is a rapid thyroid stimulating hormone (TSH) screening device used for the detection of hypothyroidism in adults, a common thyroid disease. ThyroTest(R) is FDA cleared and has also achieved CLIA waived status, so the test can be administered in the more than 100,000 CLIA waived doctors' offices in the U.S., as well as in any non-waived laboratory.Ms. Leonard stated, "Given the current condition of U.S. financial markets and its impact on the investment community, closing the acquisition of ThyroTest(R) in a cashless transaction is the ideal scenario for CLX Medical. This allows us to focus immediately on the successful marketing and distribution strategy for the product rather than on capital raising efforts.
"Our first order of business will be closing negotiations that are currently underway for distribution within the United States. Then we will implement the process of acquiring CE certification so that we can begin marketing the product through our existing and new distributors in Europe. We expect the CE certification process to be a relatively fast one, since the product is already FDA cleared in the U.S. All of this activity is geared toward generating revenue as soon as possible so that we can complete the product acquisition, continue with R&D activities with regard to the chlamydia product and, most importantly, deliver value to our shareholders," she added.
CLX Medical entered into a definitive agreement with ThyroTec, LLC, the developer of the ThyroTest(R) device, on September 8, 2008 and announced the amendment to the definitive agreement on November 6, 2008. Terms of the amendment include the issuance to ThyroTec of Series C Convertible Preferred Shares of CLX Medical and a note in the amount of $750,000 at 6% interest for a term of 30 months, secured by the assets of the corporation. During the period of the note or until the principal is paid in full, CLX agrees to pay to ThyroTec a royalty of 10% of net sales of the ThyroTest(R) product.
An escrow will be established, into which the technology, the $750,000 note and the 750,000 shares of Series C Preferred Shares will be deposited. The opening of the escrow will be considered the closing, which is expected to be completed by November 14, 2008.
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About CLX Medical, Inc.
CLX Medical, Inc. (www.clxmedical.com) holds a 51% equity interest in Zonda, Inc. (www.zondaincusa.com), which has developed several rapid point of care tests for medical and non-medical markets, including a rapid test for chlamydia. CLX has also entered into a definitive agreement to acquire ThyroTest(R), a rapid thyroid stimulating hormone (TSH) screening device used for the detection of hypothyroidism in adults, a common thyroid disease. CLX Medical is focused on the successful worldwide distribution of these and any additional products it may acquire or license.
All statements included in this release, including statements regarding potential future plans and objectives of CLX Medical, Inc. are forward-looking statements. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond CLX Medical's control. There can be no assurance that such statements will prove accurate. Actual results and future events could differ materially from those anticipated in such statements depending on many factors. Historical results are not necessarily indicative of future performance.
Contact: Gemini Financial Communications, Inc. A. Beyer 951-677-8073 Email Contact
SOURCE: CLX Medical, Inc.