RushNet, Inc. (OTCMKTS:RSHN) continues to soar and is trading sharply higher on Monday. The stock has soared 275% over the past 2 trading sessions.
heliosDX and RushNet Inc. Sign Binding Letter of Intent to Acquire Laboratory and Target Additional Laboratory Acquisitions
- announced 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.
Market Reaction: Stock Extends Rally
As of 11:44, RSHN stock moved up by 62% to $0.0064 with more than 1.49 billion shares traded hands, well above its average volume of 154 million shares. The stock has moved within a range of $ 0.0050 – 0.0080 after opening the trade at $0.0051.