Clemex Announces its Financial Results for 2014 and Adopts New General By-laws - NBC12 - Richmond, VA News

Clemex Announces its Financial Results for 2014 and Adopts New General By-laws

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Increase in sales of 4.7% and net income of $103 797.

Montreal, Quebec / ACCESSWIRE / August 21, 2014 / Clemex Technologies Inc. (TSXV: CXG.A) announces its financial results for Fiscal Year ending April 30th, 2014. The Corporation ends this Fiscal Year with total sales of $6,159,655 compared also to $5,884,631 in 2013. Gross margin remains at the same level allowing the Company to end this Fiscal Year with a net result attributable to the owners of Clemex of $103,797 compared to $103,670 in 2013, despite a small increase in Marketing and R&D expenses in this Fiscal year.

When asked to comment these results, President and CEO, Clement Forget declared the following: “We are quite happy with our financial results for 2014, more so considering the very slow start we had the first Quarter of the fiscal year. We managed to increase the sales each following quarter to finish the Fiscal year on a positive result. While they remained rather stable in Canada, sales increased by nearly 13 % in North America moving from $2,559,710 in 2013 to $3,124,250 in 2014. Consequently, sales in the United States accounted for 51% of the Corporation total sales in 2014 compared to 44% in 2013. We are quite satisfied with the sales volume we have obtained in the US, as we see an improvement in the manufacturing sector’s activity, which has always been an important market segment for Clemex.

On the International side, sales diminished by nearly 11%, from $2,058,107 in 2013 to $1,841,309 for the current year. European countries generated stable sales of $921,294 this year compared to $960,235 in 2013 while Asia sales dropped from $333,017 last year to $171,282 in 2014.

Mr. Forget continued; “Over the course of this fiscal year, we focused our R&D activities to complete the development of our new medical device for hematology applications. Developing this instrument and the medical sector requires substantial efforts from the Company, not only at the engineering level, but also with regard to quality assurance procedures, equipment and software validation, testing, with all the mandatory documentation required in view of the certification of a medical device by appropriate agencies. The certification process with Health Canada is taken more efforts than it was anticipated. Moreover, marketing activities also requires a lot of efforts from the company to be able to attend many major trade shows in the US and Canada to display the first operational instruments. To this date, comments received were very positive and confirms the need for such an instrument to the medical sector, locally and worldwide.

Finally, while pursuing a few other minor projects over the year, such as maintenance of the software and its updates, our R&D team has invested a fairly important amount of their time on adapting the hematology instrument, as a sister instrument dedicated to the veterinarian market.


Financial Highlights

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 |Fiscal year ended            | April 30th, 2014| April 30th, 2013|
 |-----------------------------------------------------------------|
 |                             |                 |                 |
 |                             |                 |                 |
 |                             |     $           |           $     |
 |                             |                 |                 |
 |-----------------------------------------------------------------|
 |Sales                        |6, 159,655       |5, 884,631       |
 |-----------------------------------------------------------------|
 |                             |                 |                 |
 |-----------------------------------------------------------------|
 |Gross Margin                 |3, 399,178       |3, 260,235       |
 |-----------------------------------------------------------------|
 |Gross Margin %               |55.2 %           |55.4 %           |
 |                             |                 |                 |
 |-----------------------------------------------------------------|
 |EBITDA                       | 387,814         | 383,906         |
 |-----------------------------------------------------------------|
 |                             |                 |                 |
 |                             |                 |                 |
 |-----------------------------------------------------------------|
 |Net Earnings attributable to |                 |                 |
 |owners of Clemex Technologies|   103,797       |   103,670       |
 |-----------------------------------------------------------------|
 |                             |                 |                 |
 |-----------------------------------------------------------------|
 |Earnings per share           |     0.003       |     0.003       |
 -------------------------------------------------------------------

Adoption of new General By-laws

The board of directors (the “Board“) adopted new General By-Laws replacing the current General By-Laws. Following a review of its current General By-Laws, the Board concluded that such By-Laws, which were adopted 24 years ago, needed to be updated, namely because the By-Laws still included provisions applicable to a private issuer. In this process, the Board added provisions for the participation to meetings by electronic means and add an advance notice provision for the nomination of directors.

Advance Notice Provision for the Nomination of Directors

By-Law No. 4 includes a provision that requires advance notice to the Corporation in circumstances where nominations of persons for election to the Board are made by shareholders of the Corporation other than pursuant to (i) a requisition to call a shareholders’ meeting made pursuant to the provisions of the Canada Business Corporations Act (the “CBCA”), or (ii) a shareholder proposal made pursuant to the provisions of the CBCA (the “Advance Notice Provision”).

Among other things, the Advance Notice Provision fixes a deadline by which holders of record of common shares of the Corporation must submit director nominations to the Corporation prior to any annual or special meeting of shareholders and sets forth the information that a shareholder must include in the notice to the Corporation for the notice to be in proper written form.

In the case of an annual meeting of shareholders, notice to the Corporation must be made not less than 40 nor more than 65 days prior to the date of the annual meeting, provided, however, that in the event that the annual meeting is to be held on a date that is less than 40 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.

In the case of a special meeting of shareholders (which is not also an annual meeting), notice to the Corporation must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.

The Advance Notice Provision provides a clear process for shareholders to follow to nominate directors and sets out a reasonable time frame for nominee submissions along with a requirement for accompanying information. The purpose of the Advance Notice Provision is to treat all shareholders fairly by ensuring that all shareholders, including those participating in a meeting by proxy rather than in person, receive adequate notice of the nominations to be considered at a meeting and, can thereby, exercise their voting rights in an informed manner. In addition, the Advance Notice Provision should assist in facilitating an orderly and efficient meeting process.

By-Law No. 4 is effective as of August 20th, 2014 and will be submitted for confirmation to the shareholders at the next annual and special meeting of shareholders of the Corporation scheduled for October 28, 2014. A copy of By-Law No. 4 may be consulted under the Corporation’s profile at www.sedar.com.

About Clemex Technologies, Inc.

Clemex Technologies Inc. develops, manufactures and markets image analysis systems and software used by quality control and research microscopy laboratories. Clemex customer base spans over many countries in America, Europe, Asia and encompasses major Research and Development Centers, prestigious Universities and large manufacturing industries in various fields including healthcare, automotive, aerospace, raw materials manufacturing, pharmaceuticals, mining and other sectors.

–30–

Clemex Technologies Inc,

800 Guimond,

Longueuil, QC, Canada J4G 1T5,

Contact:

Clement Forget

Tel: 450.651.6573

Email: ir@clemex.com

 

 

SOURCE: Clemex Technologies Inc. 

ReleaseID: 419449

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