RushNet Inc (RSHN)

[strippa]

RSHN DD Pack - March 31st 2021

https://drive.google.com/file/d/1N-a8tGIeYWd8lDse61kfLg8gL0jsALSi/view

Quick Summary

- RSHN is being taken over by HeliosDx – a profitable company with over $4M in revenues in 2020 and $1.3M EBITDA and expecting upwards of $6M in 2021
- Helios is expanding their lab testing business rapidly and also getting into CBD with GRPS
- Company has contracts across the country and is getting into the exciting field of genetic testing later this year
- A reverse split is planned (the most bullish RS I’ve seen) which will reduce the OS by 1:100 and the AS by 1:90, mainly to improve the SS
- CEO has confirmed no dilution will take place
- The company plans to organically grow after the RS with eventual plans to up list to a more reputable exchange
- The company will spinoff the existing RSHN assets into another company which RSHN shareholders will get shares of as part of a dividend – shareholders would then own shares in both HeliosDx and the new RSHN
- Company is working on getting RSHN Pink Current as soon as possible
- A $7M Market Cap here is grossly undervalued - there is not a single stock in this price range that makes $4M+ in revenue and is actually profitable
- I have been in touch with the CEO through email and he is very responsive and tries to answer questions as best he can – he is not your typical scammy/pumpy OTC CEO and is careful to disclose only publicly available information in order to not put his company in trouble with the SEC
- He seems very knowledge about the industry they’re in and is confident in the company’s ability to expand and eventually trade on a higher exchange


Company Info:

- Current Website: http://www.chattahoocheelabs.com/
- New Website: http://heliosdx.com/
- Twitter: https://twitter.com/dx_helios
- Company LinkedIn: https://www.linkedin.com/company/cpls/
- CEO LinkedIn: https://www.linkedin.com/in/ashley-sweat-89b96821/
- Latest PR: https://www.newsfilecorp.com/release/79021


1) HeliosDx Takeover

- Ticker has been taken over by HeliosDx (currently known as Chattahoochee Labs) and a name change of Rushnet to HeliosDx has been filed with the Colorado SOS
- RSHN (Now HeliosDx) is Active and in Good Standing with the State of Colorado

https://www.sos.state.co.us/biz/ViewImage.do?masterFileId=20181768333&fileId=20211307512





- Chattahoochee Labs has been in business in Florida since 2016 and has always been in good standing with the state






http://search.sunbiz.org/Inquiry/corporationsearch/SearchResultDetail?inquirytype=EntityName&directionType=PreviousList&searchNameOrder=CHATTAHOOCHEEPHYSICIANSLABORAT%20L160000598370&aggregateId=flal-l16000059837-cbe5d0a5-18e9-42a3-af03-95850a1e4f4e&searchTerm=CHATTAHOOCHEE%20WOMAN%27S%20CLUB%2C%20INC.&listNameOrder=CHATTAHOOCHEEPATIOCARE%20G828510


2) HeliosDx business operations

- Chattahoochee revenues have been increasing at around 50% year over year
- Have been in continuous operations since 2016
- $4.3M revenues in 2020 with $1.3M EBITDA, expecting $6M in 2021
- The company is actually profitable! – This is very rare in the OTC, especially for a stock still in trips! I’ve yet to find another stock below 0.005 with an Operating Income above $1M
- Company is a medical testing laboratory offering various tests including urine/blood testing, Covid-19 Testing (can process 1500 daily), and Genetic testing among others
- They are expanding having recently acquired additional equipment to increase their capacity for Toxicology and Genetic testing
- Company has lab contracts across the country and several offices
- They were recently hiring Lab Sales Reps across the country with a salary of $125K+
- PGx genetic testing is coming in Q2 2021





http://www.chattahoocheelabs.com/update/










https://www.linkedin.com/company/cpls/
https://www.linkedin.com/jobs/view/2002728073/?refId=ul7pkzj7RaSSEbw6LrfAiw%3D%3D


3) Offices

- Billing Office: Grandeza Healthcare Consultants 9218 Dayton Pike Ste 116 Soddy Daisy TN 37379
https://twitter.com/dx_helios/status/1376554163488882690
https://www.chattanoogan.com/2020/6/8/410193/New-Hamilton-County-Business-Licenses.aspx




- Primary testing laboratory: 1122 Cambridge Square Suite E & F Alpharetta, GA 30009
- I noticed on the Chattahoochee website their lab address is listed only for Suite E, but on the new HeliosDx website it states both suites E and F – perhaps another sign that they are expanding?








4) Share Structure

- Current AS is 9B and OS is 7.7B
- Despite a hefty OS, this only puts us at a market cap of only 7M – highly undervalued in my opinion
- With the merger with Helios, a 1:100 RS will take place
- New AS will be 100M and OS will be 85M
- More on the RS below






5) Reverse Split

- Yes, we have a good ol’ reverse split coming here (1:100)
- A lot of folks run away upon hearing the slightest hint of a RS
- In a typical reverse split with these OTC companies, they only reduce the OS while keeping the same bloated AS and the dilution engine starts
- In my opinion, the reverse split here is a bullish move for the reasons below:
o We will have a much cleaner share structure
o The Authorized Shares are also being reduced by almost the same ratio (1:90)
o CEO has confirmed No Dilution
o CEO has confirmed the RS was primarily to clean up the SS and eventually up list to a higher exchange!









6) Pink Current/Name & Symbol change

- HeliosDx Twitter has confirmed the company is working actively to bring RSHN Pink Current
- A name & symbol change will follow






7) Relationship with GRPS

- The new entity in addition to it’s existing lab testing business will also be involved with GRPS
- HeliosDx will be selling GRPS CBD and Nutraceutical products to it’s existing network of physicians and customers and will be receiving part of the profit from GRPS




8) RSHN Spinoff

- The company plans on spinning off the existing RSHN entity into another company
- Shareholders in RSHN would get shares in this new RSHN company as a dividend
- Shareholders would then own shares in both HeliosDx and the new RSHN





Closing Remarks

In my opinion, I believe RSHN is very undervalued here. We went from a company with minimal assets and no revenues to a company generating millions in revenue and profit. Our market cap here is very undervalued. We have plenty of updates coming from the company, including Pink Current status, expansion plans, and revenue sharing agreement with GRPS. The RS is bound to scare some folks off, but is a positive sign in my opinion and is a stepping stone for the company’s plans to up list.
I am not an expert or financial advisor, and everything stated here is my opinion only. Please do your own due diligence before investing.