The due diligence process that was initiated with the signing of a letter of intent for the acquisition included a detailed analysis of the product and extensive research into the current and potential future market for the product. The last phase of the process will include an in-depth analysis of competitive strengths and is part of an ongoing study of the product by a clinical laboratory affiliated with a major U.S. university. This last phase will culminate in a meeting with the contracted manufacturer of the device. Subsequent to that meeting, CLX expects to proceed to a definitive agreement and release the name of the product to be acquired.
The acquisition target presents considerable synergies with the product line of Zonda, Incorporated, a majority owned subsidiary of CLX that has developed a rapid point of care test for chlamydia. CLX is currently preparing to initiate clinical trials for the Zonda chlamydia test as part of the effort to achieve FDA clearance for the product. A validation study is underway to perfect the testing protocol in preparation for the clinical trials.
"The due diligence that has been completed has only strengthened our belief that the targeted product is an ideal fit for CLX and its strategy to achieve widespread distribution for unique medical diagnostic testing products," stated Vera Leonard, chief executive officer of CLX Medical.
"The analysis we have conducted has identified an impressive market opportunity -- one that rivals the potential of the chlamydia testing market. Equally significant is that this market has not been addressed in any appreciable way by competitors. We look forward to completing the remaining steps that will allow us to release the name of the product and to address the significant market potential that we see for the acquisition.
"The fact that the targeted product already has the necessary clearances to be sold to CLIA waived laboratories and doctor offices in the United States further enhances its importance to CLX as the company considers additional products for development, licensing or as new acquisition targets," Ms. Leonard added.
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About CLX Medical, Inc.
CLX Medical, Inc. (www.clxinvestments.com) holds a 51% equity interest in Zonda, Inc., which has developed rapid point of care tests for medical and non-medical markets, and CLX recently announced a letter of intent to acquire another rapid diagnostic device for the medical market. CLX has also invested, and holds a common stock position, in ActionView International, Inc. (www.actionviewinternational.com), a publicly traded global manufacturer and marketer of "smart" scrolling advertising billboards.
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:
Contact: Gemini Financial Communications, Inc. A. Beyer 951-677-8073
Source: CLX Medical, Inc.
