ALPHARETTA, GA / ACCESSWIRE / October 22, 2021 / RushNet, Inc (OTC PINK:RSHN), (the "Company") with its subsidiaries heliosDX and Grandeza Healthcare would like to issue a companywide 'Letter to Shareholders'.
Over the last 7 months, Rushnet, Inc has made several attempts to formulate a plan to restructure the outstanding and authorized share structure. In addition, RushNet, Inc has targeted several key acquisitions to bring substantial revenues and assets into the business. The Company has been able to close on these key acquisitions. The first was heliosDX in July 2021, in exchange for a new Convertible Preferred B and the second in August 2021 for Grandeza Healthcare in exchange for 300,000,000 outstanding shares.
Initially, RushNet, Inc wanted to bring in the acquisition and looked to uplist to a higher exchange or proprietary trading market. Restructuring one way or another was a definite need for Rushnet Inc and its shareholders to benefit from any change. To that end, it was determined by new management that uplisting Rushnet was not a viable or equitable option. In an effort to find a solution that would maximize shareholder benefits, while providing the funding necessary to acquire the next laboratory Rushnet, Inc later announced plans to spin off heliosDX. The shareholders of Rushnet would be issued an aggressive dividend, conversion rights and an opportunity to participate in a special offering.
In a fortuitous turn of events, the company was able to find funding for the acquisition through private capital. At that point, the landscape completely changed due to changing business needs with the signing of a term sheet with a family office to fund the Company's $20,000,000 Reg A. After careful consideration, the Company felt that taking a step away from its plans to ensure the funding to secure its future acquisition(s) was and is the right decision. The acquisition(s) targeted by heliosDX are paramount for the Company's long and short-term goals. Rushnet, Inc also believes these acquisitions for heliosDX are important to the shareholders of Rushnet, as it makes seeking to uplist to a higher exchange or proprietary trading market post-split next summer (2022) even more realistic. This means, upon execution of the 15-month plan, heliosDX is now a $15,000,000 to $25,000,000 company and, as such, trading on a different exchange can provide a maximum return to the shareholders of Rushnet via the split off dividend (and potentially other special considerations).
In that context, RushNet, Inc post-split will become Grandeza Healthcare. Grandeza Healthcare is a young fast-growing company which spun out of heliosDX in 2020. Much like heliosDX, Grandeza Healthcare has experienced a boom in growth the last few years. Management expects and plans more of the same for Grandeza Healthcare. Much of this growth is predicated on future acquisitions contemplated by heliosDX and Grandeza Healthcare. Current plans, if fully executed, should see Grandeza exceed $3,000,000 in annual revenue for 2022.
As of today, the current projections show Rushnet, Inc achieving $7,600,000 in consolidated revenue in 2021, with the combination of heliosdx and Grandeza Healthcare. The company believes it has delivered on its promised plan to deliver value to Rushnet, Inc. Similarly, the Company intends to address the share structure soon in a manner we feel is best suited for long term sustainability.
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 our goal to excel in patient and client care through physician designed panels that aid in testing compliance and reporting education.
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.
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.