RushNet Inc. (OTCMKTS: RSHN) Closing on HeliosDX Spinoff/Acquisition

RushNet Inc. (OTCMKTS: RSHN) has announced closing a transaction with heliosDX, expected to occur once RushNet meets audit requirements and becomes current in the OTCMarkets. 

RushNet to spinoff heliosDX

Following the transaction, RushNet will spinoff heliosDX, and then it will spin off itself with its assets. Each spinoff company will be listed on the stock exchange. Interestingly the heliosDX spinoff will pay a dividend of up to 12 shares (one outright share and 11 rights to acquire shares at a bargain at the heliosDX price) of heliosDX to RushNet owners for every 1000 shares as of the ex-dividend date, to be announced soon. Also, the RushNet spinoff will be a dividend to stockholders.

heliosDX will be headquartered in Georgia since that is where the diagnostic company is based.  The mechanics entail heliosDX submitting a Form 1-A, Tier 2, qualifying all shares issued in the spinoff process. This will allow RushNet stockholders to buy more shares at a lower price than the market price. The transaction proceeds will be used to consummate targeted acquisition candidates that were previously announced. There will be 40,000,000 Authorized Shares with 5% of the shares restricted and owned by heliosDX’s Chairman and CEO Ashley Sweat. 

Ashley Sweat to remain RushNet CEO

Mr. Sweat said that they have been looking to avoid a reverse split to maximize shareholder value. He added that with the spinoffs, the company will be in a position to achieve shareholder value while still accomplishing heliosDX’s goals. heliosDX has had extraordinary growth over the previous two years and intends to migrate to a higher exchange as soon as possible.

Also, Ashley Sweat will remain Chairman and CEO of RushNet once both spinoffs have been completed. RushNet will acquire Grandeza Healthcare Consultants, currently majority-owned by Mr. Sweat.