LONDON, March 4, 2010 (GLOBE NEWSWIRE) -- Flex Fuels Energy, Inc. ("Flex" or the "Company") (OTCBB:FXFL - News) announces that on February 25, 2010 it entered into a Subscription and Shareholders Agreement ("Agreement") with Bio AMD Holdings Limited, a UK limited company ("Bio-AMD").
The Agreement provides for an investment by Flex of [Pounds]865,000 GBP (approximately $1,286,775) for 63% of the fully diluted equity in Bio-AMD. The cash will be applied to the development of the Bio-AMD business.
In line with the Company's diversification plan and press release of February 10, 2010, Bio-AMD is intended to form the main focus of the Company's operations going forward. The Bio-AMD core, which may be further expanded, is expected to enable Flex to optimally apply its capital in an established, high growth sector and significantly reduce the Company's risk profile. The Company expects to continue to develop its existing WDX business, with a view to divesting or significantly reducing control as the opportunity arises in order to realise potential value build.
Bio-AMD is a medical technology company in the rapidly expanding Point Of Care ("POC") diagnostic space. Bio-AMD owns several patents and patent applications on technologies expected to be developed by Bio-AMD into low cost hand-held electronic diagnostic devices able to read third party assays. Bio-AMD expects to licence these technologies and devices to international manufacturers and distributors.
Initial technologies slated for development by Bio-AMD;
* A low manufacturing cost, qualitatively advanced, digital read-out home pregnancy test;
* A POC prothrombin time monitor using low cost and user-friendly technology to enable patient based, anticoagulant drug therapy monitoring
* A Digital Strip Reader able to perform POC rapid assay tests at a low cost in the cardiac treatment monitoring market;
* A highly accurate Magnetic Particle Reader, able to perform POC tests for multiple indications at a low cost.
The POC market is presently estimated at $12bn plus globally and is expanding. It is driven by patient need for improved clinical outcomes and convenience; and cost savings compared to laboratory analysis. The medical device and related biotechnology sector as whole continues to experience strong activity despite the economic downturn, accounting for an estimated 34% of all venture capital dollars invested in 2009. Sector merger and acquisition activity is vibrant; leaping by 154% in the third quarter of 2009 to $5.6 billion. In Q2 2009 and Q3 2009 average P/E ratios of acquired medical equipment companies were 22 and 16 respectively.
Bio-AMD is managed by experienced personnel, expert in the development of technically advanced, low cost POC devices. Flex's CFO, Robert Galvin, is actively involved in the financial management of Bio-AMD and monitoring the delivery of the Bio-AMD business plan.
Bio-AMD is based at the Daresbury Science and Innovation Campus in the North West of England, part of the UK's centralised effort to promote the commercialisation of scientific innovation.
Tom Barr, CEO of Flex, commented, "I am delighted that Flex has been able to secure this 63% investment in Bio-AMD. The management is world class and well known to Flex. We are confident that this Intellectual Property based investment has put Flex on a very firm footing for the growth we intend to deliver for shareholders."
About Flex Fuels Energy, Inc.
Flex Fuels has Intellectual Property based interests in the UK: the WDX Organisation Ltd -- the owner of the Wocu(TM), a derivative World Currency quotation (www.wocu.com); BioAMD (www.bioamd.com), a medical device developer, Flex Fuels also has mining exploration activities in British Columbia, Canada.
To find out more about Flex Fuels Energy (OTCBB:FXFL - News), visit our website at www.flexgp.com.
The Flex Fuels Energy, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4085
The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. Since the information may contain statements that involve risk and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results. Flex Fuels Energy, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.
Flex Fuels Energy, Inc.
Tom Barr, CEO
+44 (0)8445 861 910