Cortex Business Solutions Inc.

Cortex Business Solutions Inc.

November 21, 2008 16:00 ET

Cortex Announces 2008 Financial Results

Fiscal 2008 Financial and Operational Highlights

CALGARY, ALBERTA--(Marketwire - Nov. 21, 2008) -


Cortex Business Solutions Inc. (TSX VENTURE:CBX) ("Cortex" or the "Company") had an outstanding year of achievement, record revenue and growth. The Company's disciplined approach to management allowed the organization to invest in the core business to create a solid foundation for growth.

- The Company achieved record revenue of $2.24 million in fiscal year 2008, an increase of 38% from $1.63 million recorded in fiscal year 2007.

- Cortex shifted revenue focus from project management fee revenue to recurring access and usage fee and set-up fee revenue, resulting in an increase of 63% in access and usage fee revenue and a 74% increase in set-up fee revenue from fiscal 2007 to fiscal 2008.

- The Company had a cash and cash equivalents and accounts receivable balance of over $4.8 million at July 31, 2008, not including an additional Guaranteed Investment Certificates ("GICs") of $1 million invested over an 18 month period.

- The Company signed a Memorandum of Understanding ("MOU") with one of Canada's top 5 integrated oil and gas companies to expand our current initiative and become their primary e-commerce solution provider. We expect that the expanded initiative will see our network grow by 3,000 suppliers by June 2009.

- Cortex achieved 100% exercise of the remaining outstanding warrants from the 2006 private placement offering.

- The Company closed its short form prospectus on May 29, 2008 for the issuance of 25,000,000 units at $0.20 per unit. The full amount of the prospectus was filled, including $220,000 in over-allotment. The total gross proceeds to the Company were $5,220,000. The net proceeds from this prospectus to the Company were $4,421,269.

- Cortex increased the number of suppliers on the network 16% July 08 over July 07. Further increase in suppliers on our network of 39% since July 08 to end of September 08 (an increase of 61% from Jul 07 to September 08).

- The Company expanded its sales network, to a national level by signing a marketing, sales and distribution agreement with TELUS Communications on October 15, 2008.

- The Company, in a difficult staffing market, successfully recruited a number of key staff that are required to meet current contractual obligations, as well as future growth targets.

The continued escalation of cost pressures and fluctuating drilling activity in the oil & gas sector has increased the demand for innovative solutions which improve cash flow and increase operational efficiencies. These changes in the marketplace are positive for Cortex as an increased number of large and mid-sized companies began exploring the benefits of our solution.

Cortex exits fiscal 2008 with the highest revenue and strongest cash position in the Company's history. Subsequent to year end, Cortex has experienced significant growth in our customer base adding over 600 new customers to our Trading Partner Network. We continue to add new customers daily and together with our new partnership agreement with TELUS that increases the distribution and sales of our service, management expects 2009 to be a pivotal year in customer and revenue growth as we strive towards positive cashflow.

About Cortex Business Solutions Inc.

Cortex Business Solutions Inc. is an industry leading service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Trading Partner Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices resulting in improved cash flow management and business controls, while reducing day's outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging its customers existing business environment - evolving business.

Cortex products and services are non-intrusive and allow our customers the freedom to leverage and optimize their existing processes and information technology assets when it makes the best business sense for them. This approach improves the productivity, cash flow and profitability of our customers, while avoiding the risk and delays associated with large information technology or business processes re-engineering initiatives.

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Forward-Looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Cortex Business Solutions Inc.
    Ryan Lailey
    VP Business Development & Corporate Strategy
    (403) 219-1504
    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    (416) 868-1079 ext. 228
    CHF Investor Relations
    Jacqueline Wagenaar
    Account Manager
    (416) 868-1079 ext. 289