CLX Medical, Inc. Issues November 2008 Newsletter Highlighting Pending Close of ThyroTest(R) Acquisition
CLX Medical, Inc. (OTCBB: CLXN), which is focused on the marketing and distribution of unique medical diagnostic testing products, today released its November 2008 investor newsletter, which highlights the pending close of the company’s acquisition of ThyroTest(R) 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.
A PDF version of the November 2008 newsletter can be viewed on the company’s corporate website at http://www.clxmedical.com/newsletters.php.
The newsletter reviews how CLX Medical entered into a definitive agreement with ThyroTec, LLC, the developer of the ThyroTest(R) device, to acquire ThyroTest(R) and has subsequently entered into an amendment to the definitive agreement. The amendment provides that the transaction can be closed through 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.
Also included in the newsletter is an article reviewing an agreement with Kurt Kalm, an executive with over 30 years of international financial experience, to serve as interim chief financial officer of CLX Medical effective at the close of the company’s acquisition of ThyroTest(R).
Mr. Kalm has served as CFO of ThyroTec since 2004. A former CPA, Mr. Kalm possesses investment banking experience in both the United States and Europe, including with Dillon Read and Arnhold and S. Bleichroeder. His financial management employment includes with General Mills and Honeywell International. Mr. Kalm was an early stage investor in New River Pharmaceuticals, which was eventually acquired by Shire Pharmaceuticals for $2.6 billion.
Another newsletter article highlights a letter of intent under which CLX has expressed an interest in licensing additional medical diagnostic testing devices from Intellect Holdings, Ltd., research and development company focusing on the development of innovative products for the healthcare industry. The letter of intent includes an agreement to develop a unique CLIA waivable device for the detection of Chlamydia utilizing Intellect Holdings’ proprietary device system.
The newsletter also reviews the appointment of Vera Leonard, chief executive officer of CLX Medical, to the company’s Board of Directors.
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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.