LONDON, Feb. 10, 2010 (GLOBE NEWSWIRE) -- Flex Fuels Energy, Inc. ("Flex" or the "Company") (OTCBB:FXFL) announces that it has determined to focus the majority of its future operations into the bio-medical device sector.
The Company is providing an update to investors on the steps being taken as part of the next stage of its turnaround plan, and as previously disclosed in the Company's Form 8K dated July 6, 2009.
Following the shareholder vote of December 12, 2008, new management has undertaken a far reaching review and implemented a value build strategy. The Company has been making steady progress in this turnaround strategy and believes it now has the platform from which to enter the next phase of re-building value for shareholders.
Since the shareholder vote, the Company:
- Successfully negotiated the buy back and retirement to treasury of 24,854,477 shares, representing 35.8% of the shares outstanding as at December 12, 2008, for a relatively immaterial total cost of $198,835;
- Exited the originally planned bio-diesel and crush plant business envisioned by prior management, following an extensive review that concluded it was not viable to build significant value for the Company;
- Invested, as an early step to rebuild value, a relatively modest amount of cash in the second quarter of 2009 into the WDX algorithmic licensing business which has submitted a U.S. patent application for its Wocu derivative currency technology and calculation method.
As per the July 6, 2009 Form 8K, the Company has a strategy of entering further high growth potential projects with a lower risk profile, in the technology space.
Directly in line with that strategy, the Company is now in advanced negotiations to invest into a medical device opportunity, providing a platform that is expected to take advantage of the significant growth opportunity afforded in this sector and optimally apply the Company's available capital.
Following careful consideration, the Company has determined that this opportunity and entry into the Point Of Care ("POC") diagnostics sector offers excellent potential to meet the Company's stretch valuation targets, with a sufficiently reduced risk profile. Accordingly, as the next phase of the turnaround plan, the Company now intends to turn the focus of the Company's core operations and capital onto the POC bio-medical diagnostics device sector.
POC devices offer rapid near patient diagnostic testing, reducing costs and improving clinical outcomes. The POC market is growing rapidly. The Company believes that there is clear demand for rapid, intuitive and easy to use, robust handheld technologies at an effective cost. POC testing accounts for around a third of the US$30 billion global in-vitro diagnostic testing market. Diagnostic testing accounts for only a low single digit % of healthcare expenditure worldwide, yet influences around two thirds of healthcare decisions.
The medical device target owns a suite of patents and patent applications for its technology, which are intended to be developed into a range of hand held POC and self-testing devices and technology for licence to global manufacturers and distributors. The management has strong expertise covering scientific, technical and financial skills and has experience of closing commercial deals related to products in this sector.
The Company expects to continue to develop its existing assets, including the WDX opportunity, with a view to divesting or significantly reducing control as the opportunity arises in order to realise potential value build. This may necessitate the injection of further limited funds from the Company's available cash balances prior to realisation.
Further announcements regarding the POC medical device opportunity will be made in due course.
About Flex Fuels Energy, Inc.
Flex Fuels has Intellectual Property based interests in the UK: the WDX Organisation Ltd -- the owner of the Wocu™, a derivative World Currency quotation www.wocu.com; and mining exploration activities in British Columbia, Canada.
To find out more about Flex Fuels Energy (OTCBB:FXFL), visit our website at www.flexgp.com.
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Forward-Looking Statements
The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. Since the information may contain statements that involve risk and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results. Flex Fuels Energy, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.