TUCSON, AZ--(Marketwire - May 26, 2009) - CDEX Inc. (OTCBB: CEXI) (www.cdexinc.com) announces that effective June 1, 2009, it has taken additional steps to streamline its organization in response to the downturn in the global economy. The Board of Directors unanimously approved a plan which calls for a selective reduction in expenses, while maintaining full support of existing and new customers. As part of the expense reduction, salary levels have been adjusted for all employees, including new employment agreements, with the CEO to provide services at no pay and for the COO to receive an annual salary of $25,000. While the Company will continue to expand its ValiMed™ and ID2™ product lines, research into new product lines will be curtailed, pending market conditions.
“The plan, approved unanimously by the Board, has been funded by some of our largest shareholders and has the full support of our largest creditor, Gemini Master Fund,” said Malcolm Philips, CDEX CEO. “This plan is the least dilutive to all existing stockholders, allows CDEX to pursue additional investment and management options, and provides focus on supporting existing customers and acquiring new customers. We are appreciative of our vendors, shareholders, customers, distributors and employees for working with us to implement this plan.”
“As a result of the Pay per Use Plan that I initiated in January 2009 to respond to tightened hospital capital budgets, we are now in the process of closing new deals with world class hospitals,” said Greg Firmbach, Medication Safety Division VP. “During this economic downturn, the interest in ValiMed has continued to grow with existing customers looking to add additional units and new customers outfitting their pharmacies with multiple units for quality assurance of the sterile compounded end products and trend programs for narcotic return validation. I fully expect ValiMed placements in CY09 will exceed placements in CY08 and we are looking forward to a banner 2010.”
About CDEX
CDEX develops, manufactures and globally distributes products to the healthcare and security markets. The ValiMed™ product line provides life-saving validation of high-risk medications and returned narcotics. The ID2™ product line detects trace amounts of illegal drugs, such as methamphetamine. CDEX expects to advance its patented technologies to serve additional markets. To meet its plans, CDEX must strengthen its financial position as stated periodically in its SEC filings. For more information, visit www.cdexinc.com.
Non-historical statements are forward-looking, as defined in federal securities laws, and generally can be identified by words such as “expects,” “plans, " “may,” “believes,” “should,” “intends,” and similar words. These statements pose risks and uncertainties that cannot be accurately predicted or quantified and, consequently, actual results may differ materially from those expressed or implied. Such risks and uncertainties include, without limitation, the effectiveness, profitability and marketability of products, the protection of intellectual property and proprietary information, and other risks detailed periodically in filings with the SEC. There is no obligation to update any forward-looking statements.
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Malcolm Philips
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