Rushnet, Inc / Announces FINRA Denial of Planned Spin-Off

Rhea-AI Summary

RushNet, Inc. (OTC PINK:RSHN) reports that the Financial Industry Regulatory Authority (FINRA) has denied its application to spin off the heliosDx subsidiary. The denial was attributed to the company's failure to file financial statements with the Securities and Exchange Commission (SEC) for the periods ending September 30, 2001, to December 31, 2002. As a result, RushNet cannot distribute heliosDx shares to its shareholders. The company's management considers appealing the decision to the SEC, but views this option as financially burdensome. CEO Ashley Sweat expressed disappointment due to unexpected issues discovered post-acquisition, adding that future corporate actions may likely face denials as well.

Positive

• None.

Negative

• FINRA denied the spin-off application due to failure to file financial statements with the SEC.
• The inability to distribute shares of heliosDx to shareholders negatively impacts shareholder value.
• Future corporate actions by RushNet are likely to face denials based on this precedent.

ALPHARETTA, GA / ACCESSWIRE / April 3, 2023 / RushNet, Inc (OTC PINK:RSHN), (the "Company") announces FINRA Denial of Planned Spin-Off.

The management of RushNet, Inc. is disappointed to announce that the Financial Industry Regulatory Authority, FINRA, which is charged with regulating the trading of Over the Counter (OTC) securities has denied the Company's application to approve a spin-off of its heliosDx subsidiary to shareholder. Without this necessary approval from FINRA, it is not possible to distribute the shares of heliosDx to the shareholders of the company.

FINRA denied approving the planned spin-off of heliosDx specifically due to RushNet's failure to file financial statements with the Securities and Exchange Commission (SEC) for the fiscal periods ending September 30^th, 2001 through December 31^st, 2002. The company appealed this decision to FINRA's Uniform Practice Code Committee, which subsequently denied the appeal. The necessary information to file these financial statements dramatically predates the existing management of the company and is not available. As a result of the nature of this denial by FINRA, it is reasonable to expect that future corporate action submissions will be denied as well.

In theory, the company could appeal FINRA's decision to the SEC. However, the time and expense of the appeal, as well as the financial burden this would place on the company render this option unrealistic.

Ashley Sweat, the CEO of heliosDx, expressed his significant disappointment at the situation. Having spent a significant amount of time, money, and energy to correct the deficiencies discovered in RushNet following its acquisition of heloisDx, Mr. Sweat stated "I was completely unaware of all the problems with RushNet, Inc. when I agreed to the acquisition. A significant amount of money has been spent correcting problems that should not have existed." Mr. Sweat further stated the company is currently evaluating its options for the future.

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 the 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.

SOURCE: RushNet, Inc.

View source version on accesswire.com:
https://www.accesswire.com/747367/Rushnet-Inc-Announces-FINRA-Denial-of-Planned-Spin-Off

FAQ

What was the reason for RushNet's FINRA spin-off denial on April 3, 2023?

RushNet's spin-off application was denied due to the company's failure to file required financial statements with the SEC.

How does the FINRA denial affect RushNet shareholders?

The denial prevents RushNet from distributing shares of heliosDx to its shareholders, potentially reducing shareholder value.

What options does RushNet have after the FINRA denial?

RushNet could appeal to the SEC, but management considers this financially burdensome.

What issues did the CEO of heliosDx report regarding RushNet?

CEO Ashley Sweat indicated significant problems were discovered following the acquisition of heliosDx, leading to unexpected expenses.

What could future corporate actions look like for RushNet after this denial?

Future corporate actions may be denied by FINRA, following the precedent set by the recent denial.