ALPHARETTA, GA / ACCESSWIRE / April 6, 2022 / Rushnet, Inc (OTC PINK:RSHN), (the "Company") is pleased to announce an update as it progresses toward its major milestones and goals.
The audit will be completed shortly with minor adjustments. On the heels of receiving a positive response from the ongoing audit, the company is faced with a critical decision that must be made in order to avoid any negative effect to the greater vision and timeline of the company's goals.
The Rushnet, Inc. of the past is long gone. However, remnants of its historical dealings still cling to the business that have posed challenges to current management as it navigates the public sector in pursuit of the long-term goals that we've set for the current Rushnet. Today, we have a completely new face, new management and new goals within the National Diagnostics Laboratory and the Healthcare Billing and Coding space which is operating today as heliosDX and Grandeza Healthcare. The services and objectives of today are completely different and have an ultimate goal of continuing the enhancement of shareholder value. As in life, a business can be presented with various paths to choose in order to stay the course and achieve its ultimate long-term vision. The company's (heliosDX and Grandeza Healthcare) goals have not changed: grow the business to $50 million in revenue in three years and thereby increase shareholder value. The company has not wavered from this target and aims to accomplish this vision. The main primary target on this long-term path has been to acquire another toxicology laboratory that we know will greatly benefit the business and its shareholders.
The paths for moving forward sometimes become foggy and entangled in the historical "issues" that have been and become challenges in the midst of the forest through which we trek. However, management has known all along that the paths still ultimately lead to the main objective and its primary next step of the acquisition. With that picture painted, we would like to provide further details of the past few months which have led to hurdles which have forced a critical decision to ensure that we stay the course.
The means for acquisition comes through funding that we seek in order to provide the steppingstone to the next level. The path has led us in initiating a reverse split which was a requirement of one of the more attractive funding options presented to the company that would provide access to more than sufficient funding needed. After submitting the application to Finra in October of 2021, it has become clear after six months that the historical "issues" will require further costly attention, time, and detail. Due to this we have withdrawn the reverse split application so that we can proceed in moving forward on the company's roadmap. We now have a path that does not require the reverse stock split and still satisfies the funding needs.
To answer those posing the "why quit now," and/or "what now" question, here's the simple answer. Other paths became clear with, also, more than sufficient funding, less hassle, and the avoidance of negative shareholder reaction to a reverse stock split. The frustrations by the Rushnet investors are not unheard, nor unfelt by Rushnet management. Our persistence at finding the better, more efficient way is relentless and we hope that this fervor drives a confidence within the investor base and the community that we will stop at nothing to obtain the goals that we have set for the company. Now we are able to satisfy investor demands of avoiding the reverse stock split.
If you're still left pondering on this decision and asking "why," see the additional supporting highlights to our decision-making process. In a concise presentation of weighing the pros and cons, the decision boils down to this:
Proceeding with the stock consolidation process:
- would cost the company time and money, and thus, become a detriment to the business
- is viewed negatively by many investors
- has at least some potential of becoming an obstacle to:
- Acquisition of target laboratory
- Long term goal of $50 million in revenue
By withdrawing from the corporate action process, we:
- Can move forward with the Acquisition
- Can move forward with the split off of heliosDX to pursue uplist of heliosDX, resulting in a dividend to RushNet shareholders instead of a consolidation
- Provide potential share conversions
- Can reduce Rushnet structure through other means
- Can explore other possible shareholder incentives to benefit the shareholders and company in the long run
More details on the above will be announced as soon as Rushnet's Tier 2 Regulation A application is submitted, and an "Ex-dividend date" is set. In standard fashion, Rushnet strives to be transparent and provide information on this journey as quickly and clearly as possible while adhering to SEC regulations. Now that the path is clear, we anticipate quick action once we have received the official clean bill of record from the auditors at Somerset CPA's and Advisors. From that point we will file Rushnet's Tier 2 Regulation A with the SEC and trigger the initial phase of funding to close on the targeted laboratory. We anxiously await checking that first mountain of a milestone in route to the goal of $50 million in revenue.
About HeliosDx:
heliosDX is a National Clinical Reference Laboratory offering High-Complexity Urine Drug Testing (UDT), Behavioral Drug Testing, Allergy Droplet Cards, Oral Fluids, Infectious Disease (PCR), and NGS Genetic Testing. We are contracted in 44 of the lower 48 states and looking to expand our reach and capabilities. We intend to always stay ahead of the curve by continually investing in our infrastructure with the most efficient scientific proven instruments and latest cutting-edge software for patient and physician satisfaction. In management's opinion, following such best practices are intended to allow heliosDX to provide physicians fast and accurate reporting, meeting, and exceeding industry benchmarks. It is the company's goal to excel in patient and client care through physician designed panels that aid in testing compliance and reporting education.
Contact: Ashley Sweat
[email protected]
www.heliosdx.com
Twitter Handle: @dx_helios
About Grandeza Healthcare:
Grandeza Healthcare is a healthcare billing and consulting company. Providing expert billing and coding services to laboratories, medical practices, dental offices, and other medical verticals. In addition to billing, we provide Revenue Cycle Management (RCM) for all clients, as well as customized consulting services. We are a rapidly growing company adding new services and value to further demonstrate our competitive advantage.
Contact: Danielle Bauer
[email protected]
www.grandezahc.com
Twitter Handle: @GrandezaHC
Safe Harbor Notice
Certain statements contained herein are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). The Company cautions that statements, and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates made by management. Actual results could differ materially from current projections or implied results. The Companies undertake no obligation to revise these statements following the date of this news release.
Investor caution/added risk for investors in companies claiming involvement in COVID-19 initiatives -
On April 8, 2020, SEC Chairman Jay Clayton and William Hinman, the Director of the Division of Corporation Finance, issued a joint public statement on the importance of disclosure during the COVID-19 crisis.
The SEC and Self-Regulatory Organizations are targeting public companies that claim to have products, treatment, or other strategies with regard to COVID-19.
The ultimate impact of the COVID-19 pandemic on the Company's operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak. Additionally, new information may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption, reduced customer traffic and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time.
We further caution investors that our primary focus and goal is to battle this pandemic for the good of the world. As such, it is possible that we may find it necessary to make disclosures which are consistent with that goal, but which may be averse to the pecuniary interests of the Company and of its shareholders.
SOURCE: RushNet, Inc.