heliosDX to Remain as a Rushnet Subsidiary Along With Grandeza Healthcare

Rhea-AI Summary

RushNet, Inc. (OTC PINK: RSHN) has decided to retain heliosDX and Grandeza Healthcare as subsidiaries, reversing prior plans for a split-off. This strategic move aims to maximize shareholder value, with 2021 revenue forecasts exceeding $7.6 million. heliosDX anticipates revenues of $16 million from a pending lab acquisition, projecting $20 million to $25 million within 12 months. Grandeza expects to generate over $1.6 million this year. Both companies plan further acquisitions and potential uplisting to TSXV.

Positive

• Retention of heliosDX and Grandeza Healthcare is aimed at maximizing shareholder value.
• Combined revenue forecast for RushNet, heliosDX, and Grandeza exceeds $7.6 million for 2021.
• heliosDX expects annual revenue to reach $16 million post-acquisition, with a target of $20 million to $25 million after 12 months.
• Grandeza Healthcare has generated over $1.1 million in eight months, projecting revenues of $3 million in 2022.

Negative

• None.

ALPHARETTA, GA / ACCESSWIRE / August 31, 2021 / RushNet, Inc (OTC PINK:RSHN) , (the "Company") is pleased to announce, after months of deliberation and orchestrating the most efficacious path to maximize shareholder value while achieving the Company's objectives. That path - retaining heliosDX and Grandeza Healthcare as RushNet subsidiaries.

The previously planned split-off of heliosDX from RushNet, Inc with the anticipated dividend will not achieve maximum value to the shareholders. Instead, RushNet, Inc, heliosDX and Grandeza Healthcare ("Grandeza") will stay focused on their respective core businesses and objectives, in tandem, thus maximizing shareholder value. Currently, RushNet, Inc combined with heliosDX and Grandeza are forecasting an annual revenue for 2021 to exceed $7,600,000.

heliosDX, in the meantime, intends to close on the binding Letter of Intent it signed over the summer to acquire another sizable and profitable lab. Upon closing, heliosDX forecasts an annual combined revenue with the new lab of $16,000,000. After a full 12 months of combined operations, heliosDX forecasts revenues to be $20,000,000 to $25,000,000. In addition, we estimate our gross profit to remain above 80% of revenues, and our profit margin in the 25% to 30% range. Part of that margin maximization will be occasioned by using Grandeza for its billing purposes. Furthermore, heliosDX intends to pursue an additional 2 to 3 acquisitions we have previously targeted to reach its two-year objective of becoming a $50,000,000 annual revenue company. heliosDX has engaged counsel and will be pursuing listing on TSXV listing (the venture capital subsidiary of the Toronto Stock Exchange), and, to that end, is preparing two years of audited financial statements.

Grandeza, the newest subsidiary of RushNet, Inc, will continue to focus on building out its billing and coding platform. This is Grandeza's initial year of operations, albeit profitable. Nonetheless, Grandeza expects to exceed $1,600,000 in annual revenue. Grandeza has already derived more than $1,100,000 of revenues in eight months of operations this year and remains profitable despite its aggressive growth plans. Specifically, Grandeza intends to launch a healthcare employment placement service in late 2021/early 2022. This new division for Grandeza will be anchored by a future acquisition. It is Grandeza's objective, upon completion of its targeted acquisition to achieve annual revenues exceeding $3,000,000 in 2022.

Ashley Sweat, CEO of RushNet, Inc says, "we are currently still pursuing additional profitable and strategic acquisitions for the collective benefit of RushNet and our shareholders." Some of these companies will remain as subsidiaries of RushNet. Others may ultimately be spun off and become a stand-alone entity trading with its own symbol but providing dividends to RushNet shareholders upon completion of the action. RushNet is still completing its audits. Additionally, upon completion of the audits, RushNet will pursue uplisting as events permit, with heliosDX and Grandeza as its forefront affiliates.

The existing RushNet Legacy business is still expected to be spun off in a public offering. It is our intent to extend a rights offering at that time to existing Company shareholders. We will issue a release as our plans becomes more concrete and closer to the associated SEC filing date.

Similarly, additional information will be made readily available in the near future to offer further details regarding the course change of heliosDX and RushNet.

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 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. We provide 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:
Ashley Sweat
asweat@heliosdx.com
www.heliosdx.com
Twitter Handle: @dx_helios

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 Company undertakes 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 adverse to the pecuniary interests of the Company and of its shareholders.

SOURCE: RushNet, Inc.

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FAQ

What is the latest revenue forecast for RushNet, Inc. (RSHN)?

RushNet, Inc. forecasts combined revenue exceeding $7.6 million for 2021.

What acquisitions is heliosDX planning?

heliosDX plans to acquire another lab to boost its annual revenue to $16 million.

How much revenue does Grandeza Healthcare expect in 2021?

Grandeza Healthcare expects to exceed $1.6 million in annual revenue for 2021.

What are the future plans for RushNet, Inc. (RSHN)?

RushNet, Inc. is pursuing additional acquisitions and plans for potential uplisting to TSXV.

What revenue targets does heliosDX have for the next two years?

heliosDX aims to achieve an annual revenue of $50 million within two years.