MURRIETA, CA--(Marketwire - January 20, 2009) -
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CLX Medical, Inc. (OTCBB: CLXNE), which is focused on the marketing and distribution of unique medical diagnostic testing products, today announced that the anticipated effective date for a reverse split of the company’s common stock, which was authorized by majority shareholder approval in July 2008.
CLX has filed the appropriate paperwork to implement the reverse split at a ratio of up to one-for-two thousand and expects it to become effective on or about January 23, 2009. The exact date of the reverse split will be determined by NASDAQ and announced by CLX Medical on the day the split becomes effective.
The reverse split was sought by the company’s Board of Directors in order to position CLX Medical to execute an acquisition strategy and to allow for the execution of a post-acquisition strategy. After receiving the authorization for the reverse split, CLX Medical reached agreement to acquire and ultimately closed the acquisition of, ThyroTest®, a rapid thyroid stimulating hormone (TSH) screening device used for the detection of hypothyroidism in adults, a common thyroid disease.
CLX Medical is currently implementing its ThyroTest® marketing program and is seeking to establish distribution of the product with a national U.S. distributor. ThyroTest® 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.
“CLX Medical is now focused on the successful marketing and distribution of ThyroTest®, and the restructure of the company’s common stock is seen as an essential element of moving the operations of CLX Medical forward,” commented Patrick Edgerton as Chairman of the Board of Directors. “Management of CLX Medical strongly believes in the potential of ThyroTest® and we believe the company is close to establishing its primary distribution relationship for the U.S. market.
“At the same time, however, the company needs to chart a course in the public markets that allows it to attract capital to support its current operations and to fund potential future acquisitions or the licensing of additional products. The recapitalization is one part of that plan, which also includes a strategy to raise necessary capital outside the common stock, using an offering of preferred shares.
“We plan to continue to address the company’s current status, both from the public market and operations perspective and will keep shareholders informed as frequently as possible,” Mr. Edgerton added.
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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 recently closed its acquisition of ThyroTest®, 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.
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Gemini Financial Communications, Inc.
A. Beyer
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