Rushnet, Inc Investment Partners Remain Confident in heliosDX Overall Strategy; Restructures Debt

Rhea-AI Summary

RushNet, Inc. (OTC PINK:RSHN) has restructured its debt, allowing for resumed payments to investment partners at 3% of monthly gross revenues, while the interest rate has reverted to 1%. This follows the deferral agreement made in March 2022, which postponed payments until March 31, 2023. The company continues to pursue reparations from Wellmed, with any recovered funds directed to the debt balance. CEO Ashley Sweat expressed gratitude for partner support during challenges faced over the last nine months. Additionally, the high-interest loan previously burdening the company has been fully paid off. Year-end 2022 financial results are expected soon.

Positive

• Debt restructured to allow for payment based on 3% of monthly gross revenues.
• Interest rate reduced to 1%, enhancing cash flow.
• High-interest loan has been paid off, reducing financial burden.

Negative

• Continued financial challenges highlighted by the need for debt restructuring.
• Dependence on recovery from Wellmed, indicating ongoing financial uncertainty.

ALPHARETTA, GA / ACCESSWIRE / March 23, 2023 / RushNet, Inc (OTC PINK:RSHN), (the "Company") is pleased to announce the company has reached an agreement to restructure debt as the company continues working with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (Finra).

In March of 2022, the company reached an agreement with its investment partners to defer payments until March 31, 2023.

The amendment to the original debt liability allowed heliosDX to defer payment until March 31, 2023, at an interest rate of 2% above prime on the monthly payment, and not the sum of the overall balance. This was a significant advantage for heliosDX at that time, as the company would have paid very little interest to push the debt payments until 2023. heliosDX and the investment partners had the right on a quarterly basis to end the restructuring should it no longer be needed.

The new amendment to the aforementioned debt structure of 2022 will resume payments to our investment partners at a rate of 3% of monthly gross revenues. Our investment partners have also agreed to adjust the interest rate of the loan back to the original interest rate of 1%. In addition, the company continues to seek reparations from Wellmed, a subsidiary of United Healthcare. The company has agreed to pay 100% of any money recouped from the ongoing embattlement with Wellmed to the overall debt balance.

Ashley Sweat, CEO of heliosdx and Rushnet Inc. says, "I am amazed and grateful for the continued support our investment partners, and other partners have provided us during the last nine months. We have had significant challenges related to external factors outside of our control. Many companies who faced the type of adversity that we have experienced over the last nine months may not have survived the storm. We have been able to overcome these challenges with their support and belief in the direction that we are headed. We believe this restructuring agreement is a testament to our overall strategy". The company is also happy to report the high interest loan reported on previous financial statements has been paid in full, and is no longer a burden to the business. Our end of the year 2022 financials will be released in the coming week.

About HeliosDx:

heliosDX is a National Clinical Reference Laboratory offering High-Complexity Urine Drug Testing (UDT), Behavioral Drug Testing, Allergy Droplet Cards, Oral Fluids, and Infectious Disease (PCR). 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.

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 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/745530/Rushnet-Inc-Investment-Partners-Remain-Confident-in-heliosDX-Overall-Strategy-Restructures-Debt

FAQ

What is the latest news about RushNet (RSHN) regarding debt restructuring?

RushNet has announced a restructuring of its debt, allowing for payments based on 3% of monthly gross revenues.

What changes were made to the interest rates on RushNet's debt?

The interest rate on RushNet's debt has been reduced to 1% as part of the restructuring agreement.

How is RushNet addressing financial challenges with Wellmed?

RushNet is seeking reparations from Wellmed, with recovered funds allocated to their overall debt.

When will RushNet (RSHN) release its year-end financial results?

RushNet plans to release its year-end 2022 financial results shortly.

What does the debt restructuring mean for RushNet's investors?

The restructuring may improve cash flow for RushNet and provide a clearer path towards financial stability.