TEMECULA, Calif., Jan. 5, 2005 (PRIMEZONE) -- CLX Investment Company, Inc. (OTCBB:CLXN) Chief Executive Officer, Shane H. Traveller, today issued a comprehensive statement outlining the Company's plans for its investment portfolio.
In his statement, Mr. Traveller said, "CLX Investment Company is in an exciting transition period as it moves toward becoming a diversified investment fund. In September 2004, CLX filed to become a business development company ("BDC"), which is essentially a closed-end, publicly-traded investment company. Our investments will typically be in relatively small, privately-held companies that are well positioned for growth, but will require some capital infusion and management assistance from their parent company. BDCs are an invaluable tool for providing much-needed resources to growth and development stage businesses.
"In December 2004, CLX made its first investment as a BDC. By acquiring a 40% interest in eStrategy Solutions, Inc., a Texas-based developer of online e-learning solutions, we have a solid platform on which to build our portfolio. eStrategy Solutions has assisted both state and local governments with using a new approach to online training that both slashes budget problems and generates revenue for customers. Currently profitable, eStrategy Solutions anticipates generating net income of nearly $3 million in 2005.
"eStrategy Solutions is representative of the type of portfolio investment CLX will continue seeking. Our primary strategy is to locate and invest in small companies that have already generated some success and have demonstrated both viability and growth potential. Ideally our investment capital will be used to affect a quantum growth in the portfolio company's revenues.
"Because of these fairly strict investment criteria, CLX Investment Company intends to limit its new investments to 2-3 per year. This self-imposed limit will allow us to focus on those few investments with the greatest potential and avoid over-committing the Company's resources. As portfolio investments mature, we will employ a dual strategy for returning this success to our shareholders. Cash dividends paid to us by our portfolio investments are expected to be partially distributed to our shareholders, with a portion of the dividends being retained to cover operating costs and for reinvestment into other portfolio companies. Where feasible, and warranted, we will distribute ownership in our portfolio companies to our shareholders as stock dividends. These stock dividends would be part of a larger plan to bring a particular portfolio investment to the public market as a stand-alone, publicly-traded company.
"We are excited by the future of CLX Investment Company and want to share that enthusiasm with both our long-term and recent shareholders. We anticipate maintaining an open dialogue with our shareholders through frequent press releases, occasional management interviews, and a monthly newsletter. We also encourage our shareholders to visit our website www.clxinvestments.com for the latest news and portfolio updates."
About the Company
CLX Investment Company elected to be regulated as a Business Development Company pursuant to Section 54 of the Investment Company Act of 1940 on September 13, 2004 and is pursuing a business plan wherein the Company will seek to acquire and invest in developing companies. CLX acquired a 40% interest in eStrategy Solutions (http://www.estrategysolutions.com) on December 07, 2004.
All statements included in this release, including statements regarding potential future plans and objectives of CLX Investments are forward-looking statements. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond CLX Investments' control. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially depending on many factors. CLX Investments cautions that historical results are not necessarily indicative of the future performance.