MONTREAL, QUEBEC--(MARKET WIRE)--May 16, 2007 -- IBEX Technologies Inc. (Toronto:IBT.TO - News) announced today that the Company has implemented a restructuring plan aimed at conserving cash and breaking even.
In order to accomplish this goal IBEX will eliminate all programs not essential to the sale and marketing of its specialty glycobiology enzymes and arthritis assays.
IBEX will eliminate 9 positions and related expenses, with the effect that annual operational expenses will be below $2.0 million. The principal portion of the expense charges will be accounted for in the quarters ending July 31, 2007, and October 31, 2007. Following the completion of the restructuring at the end of October, IBEX expects to have cash of approximately $1 million and generate a positive cash flow on a quarter to quarter basis.
“We are disappointed that as we cut programs we have to see so many valuable employees leave the company, and we thank them for their valued service,” said Paul Baehr, IBEX President & CEO. “Their departure leaves behind a smaller, but stronger Company”.
Danny Netto, VP Finance and CFO has announced his desire to leave the Company in November 2007, following the filing of the financials for Fiscal 2007. Following his departure Mr. Netto will join the IBEX board of directors.
IBEX sales of its glycobiology enzymes and arthritis assays have increased significantly over the past three years, with IBEX reporting sales of $2 million in Fiscal 2006. IBEX expects to report sales equal to or above that number for Fiscal Years 2007 and 2008.
In addition to optimizing its base business IBEX will seek to maximize shareholder value through discussions with companies interested in the IBEX infrastructure and accumulated tax loss carry forwards. IBEX will also seek to expand its line of products by taking on the making or distribution of products with existing sales.
About IBEX
IBEX currently markets a series of arthritis assays which are widely used in pharmaceutical research. These assays are based on the discovery of a number of specific molecular biomarkers associated with collagen synthesis and degradation.
The Company also markets a series of proprietary enzymes (heparinases and chondroitinases) for research use, as well Heparinase I which is used in many leading hemostasis monitoring devices.
For more information, please visit the Company’s web site at www.ibex.ca
Safe Harbor Statement
All of the statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown. Some examples of known risks are: the impact of general economic conditions, general conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which IBEX does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation or otherwise. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. IBEX disclaims any intention or obligation to update these statements.
Contact: Contacts: IBEX Technologies Inc. Paul Baehr President & CEO 514-344-4004 514-344-8827 (FAX) Info@IBEX.ca http://www.ibex.ca
LaVoie Group Donna LaVoie 978-745-4200 X103 dlavoie@lavoiegroup.com
Source: IBEX TECHNOLOGIES INC.
