TEMECULA, Calif., Sept. 28, 2004 (PRIMEZONE) -- CLX Investment Company, Inc. (OTCBB:CLXN), formerly known as CLX Energy, today announced the sale of its wholly-owned subsidiary, CLX Oil & Gas, LLC, to prior management of the Company in exchange for 1,433,556 shares of common stock held by the buyers. The shares will be returned to the CLX Investment Company's treasury, an action which will result in a 54% reduction of issued and outstanding common stock of the Company.
"The sale of this subsidiary is consistent with the intended business operations of the Company as outlined by the Board of Directors and has a significantly anti-dilutive effect by reducing the number of shares issued and outstanding by over half. With this sale completed, the CLX Investment Company expects to focus management's considerable experience on making strategic investments in developing companies for the benefit of CLX's shareholders. It is the Company's intention to acquire interests in private and public companies across a spectrum of industries and grow the value of CLX's investment fund," commented Shane H. Traveller, Chief Executive Officer of the Company.
"We are currently completing due diligence on a number of potential investments for the CLX portfolio, and look forward to announcing the Company's first acquisition in the near future," added Mr. Traveller.
On May 24, 2004, the Board of Directors unanimously agreed to discontinue operating as an energy company and to pursue a business plan wherein the Company will seek to acquire and invest in developing companies. The Board of Directors instructed management to find a buyer for CLX Oil & Gas, LLC. The Company filed an N-54 Notification with the Securities and Exchange Commission on September 13, 2004. As a result, CLX elected to be regulated as a Business Development Company pursuant to Section 54 of the Investment Company Act of 1940.
The value of the common stock given and the value of CLX Oil & Gas, LLC were deemed to be equal by an independent appraiser and the Company obtained an independent fairness opinion regarding the proposed transaction. None of the current members of the Company's management team benefits from the sale of CLX Oil & Gas, LLC.
All statements included in this release, including statements regarding potential future plans and objectives of CLX Energy are forward-looking statements. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond CLX Energy's 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 Energy cautions that historical results are not necessarily indicative of the future performance.