heliosDX and RushNet Inc. Sign Binding Letter of Intent to Acquire Laboratory and Target Additional Laboratory Acquisitions
Alpharetta, Georgia--(Newsfile Corp. - June 7, 2021) - RushNet, Inc (OTC PINK: RSHN) ("RushNet") with merger/acquisition target heliosDX, is pleased to announce a Binding Letter of Intent by heliosdDX to acquire a privately held laboratory with $10,000,000 annual revenues processing more than 5,000 tests monthly with a capacity of 12,000 monthly UDS tests.
The acquisition further increases the National footprint of heliosDX while also reducing costs, tripling the sales force, and increasing the capacity to process substantially more testing in the UDS portfolio. Significantly, the types of tests offered by heliosDX coupled with those offered by the new facility create a more expansive combined testing capacity. It is apparent as the market continues to evolve, we should attain an even higher sales volume and footprint to secure larger national contracts, particularly with insurance carriers and medical groups, which is critical to the long-term success of heliosDX. The acquisition would expedite this process along with offering more testing options at the target labs clinic sites which are not presently available, including PCR, Allergy and PGx. Conversely, the target laboratory will expand heliosDX testing capabilities and portfolio with Oral Fluid Toxicology.
Upon closing of the acquisition, we should have combined annual revenues exceeding $16,000,000. The operational efficiencies should decrease costs and increase operating margins by 10%. Accordingly, the opportunity for growth and enhanced bottom-line is substantial. The expected revenue after a full 12 months of combined operations is estimated to be $20,000,000 to $25,000,000. Additionally, with the enhanced production capacity, heliosdDX will be able to process more than 18,000 UDS samples monthly. Upon close, heliosdDX will be processing more than 7,500 UDS samples monthly with an expected growth target of 10,000 UDS monthly. This transaction not only enhances the bottom-line, but rings in a new era of scalability for heliosDX. The expected closing timeframe for this acquisition is slated for Mid-September to Early October 2021. However, both parties are interested in expediting the closing if possible.
In addition to this acquisition, heliosDX has identified a second laboratory to acquire. This laboratory likewise offers the ability for heliosDX to further enhance its operating margin as well as sales. An expected execution of the Binding Letter of Intent with targeted laboratory is for late June to early July 2021. This lab acquisition would bring an additional 1,000,000 dollars in annual revenue. More importantly, this is a strategic acquisition for location and contracting potential.
Lastly, heliosDX continues to search the market for additional laboratories for acquisition. A third laboratory has been identified and preliminary numbers shared, but negotiations have yet to begin. An update will be provided as more information is readily available.
At this time, due to the nature of such agreement and potential of disruption, each privately held company has asked for anonymity. A combined press release will be issued by the entities when appropriate.
Having commenced operations in 2015, HeliosDX has facilitated profit and exceptional growth each year and forecasts approximately $6,000,000 in revenue in 2021. This year we take on our third mass spectrometer, the powerful Absciex 4500, which will allow us to serve the massive needs of our clientele, which has been under strain. With the procurement of a new QuantStudio12x we now enjoy a testing capacity of 1500 Covid19 patients per day. Significantly, as the importance of covid testing diminishes, this can substitute for testing other disease states. With infectious disease testing validations being completed and coming online, we will be better positioned to serve clients, having created more robust, more reliable and more rapid testing menus for Covid19, UTI, RPP, Women's Health, STI, Nail Fungus and testing for other medical maladies. Furthermore, with the assumption of our Ion S5 GeneStudio NGS testing equipment, we are poised for the huge genetics market that is so underserved.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/86703