RushNet, Inc Closes the Acquisition of heliosDX which Brings Significant Revenues to the Company

Rhea-AI Summary

RushNet, Inc (OTC PINK:RSHN) has successfully completed the acquisition of heliosDX, effective July 1, 2021. This National Clinical Reference Laboratory reported annual revenues of approximately $4.29 million in 2020, with 2021 projections reaching $6 million. The acquisition is expected to elevate annual revenues beyond $16 million, with an ambitious target of exceeding $50 million within two years. heliosDX aims to expand its offerings and improve its market position following the integration of a privately held laboratory, enhancing its specimen capacity and potential growth in infectious disease testing.

Positive

• Acquisition of heliosDX expected to increase RushNet's annual revenues significantly, projected to exceed $16 million post-acquisition.
• heliosDX reported a revenue growth trend, with 2021 revenues through Q2 at $2.83 million and an expected total of $6 million.
• Plans for further acquisitions promise to enhance revenues beyond $25 million annually after integration.
• Expanding operations in both Georgia and Florida positions heliosDX for future growth and market expansion.
• Implementation of a National Sales Campaign utilizing advanced technology aims to reduce client acquisition costs.

Negative

• None.

ALPHARETTA, GA / ACCESSWIRE / July 8, 2021 / RushNet, Inc (OTC PINK:RSHN), ("the Company") is pleased to announce the acquisition of heliosDX was closed and effective July 1, 2021.

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. This acquisition brings significant value to RushNet, Inc and its shareholders.

heliosDX had annual revenues in 2019 of $2,639,454.58, 2020 of $4,294,435.82, and in 2021 through the 2^nd Quarter of $2,827,582.50. heliosDX expects their current trends to hold and should meet their stretch goal of $6,000,000 for 2021. The company is profitable and has seen profits continue to grow right alongside the revenue growth. The company is also under a Binding Letter of Intent to acquire a privately held Laboratory slated to close late 3^rd Quarter or early 4^th Quarter. This acquisition will immediately bring heliosDX annual revenues to over $16,000,000 with a tremendous upside.

The combined operations vastly increase the heliosDX specimen capacity, sales representatives, and creates room for future growth in their infectious disease business, which is expected to outpace toxicology within 12 months. In a separate transaction, the company is seeking to purchase the building that the private company currently occupies, which includes an empty space attached for future expansion. This first acquisition should yield annual revenues for heliosDX of $25,000,000 after a full 12 months of combined operations. We believe, as we continue to grow organically, along with acquisitions, we can reach and exceed $50,000,000 in annual revenue within two years.

Currently, heliosDX is in Alpharetta, GA which will remain the laboratory headquarters after the acquisition of the private laboratory. The company also just negotiated a new lease in Orange Park, Florida (Oakleaf Area) to open executive offices with an anticipated opening date of August 1, 2021. heliosDX recently announced via their Twitter page (https://twitter.com/dx_helios) they are actively seeking board members and expect to announce members throughout the 3^rd Quarter.

heliosDX is launching a National Sales Campaign utilizing Verb's interactive technology and hired a Director of Virtual Sales to run this platform. This platform is anticipated to begin on August 1, 2021. We believe this platform will significantly increase the company's ability to reach new clients at a fraction of the cost across the country. In late June 2021, heliosDX extended an offer to hire a Chief Operations Officer (COO), which has been accepted with a start date of August 2, 2021. Other executive positions are currently being explored and formal job postings will be made available on the company's LinkedIn business page.

RushNet, Inc and heliosDX have significant plans to reduce the current share structure. We are not prepared at this time to disclose the nature of this reduction but can confirm it is not through a Reverse Split (RS).

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. Always staying 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. This allows heliosDX to provide physicians fast and accurate reporting meeting and exceeding industry benchmarks. We excel in patient and client care through physician designed panels that aid in testing compliance and reporting education.

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 Companies caution that statements, and assumptions made in this news release constitute forward-looking statements and makes 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 adverse to the pecuniary interests of the Company and of its shareholders.

SOURCE: RushNet, Inc.

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FAQ

What is the significance of RushNet's acquisition of heliosDX?

The acquisition is expected to significantly increase RushNet's revenues, enhancing its market presence in clinical laboratory services.

What are the projected revenues for heliosDX in 2021?

heliosDX anticipates reaching $6 million in revenues for 2021, based on current trends.

How will the acquisition of heliosDX impact RushNet shareholders?

Shareholders can expect increased revenue potential and growth opportunities due to the enhanced capabilities of heliosDX post-acquisition.

When was the acquisition of heliosDX completed?

The acquisition of heliosDX was completed and became effective on July 1, 2021.

What future plans does heliosDX have following the acquisition?

heliosDX plans to acquire a privately held laboratory, which is expected to further increase its annual revenues beyond $25 million.