RushNet Inc (RSHN)

[D-Money6]

Rushnet, Inc. & HeliosDX

Currently, RushNet, Inc. (OTC:RSHN) is a publicly traded stock going through a reverse merger transaction. Richard Goulding of Rushnet, Inc. using his vast network as a physician, brought in Ashley Sweat of HeliosDX, the merger candidate, to bring value to RSHN shareholders. He has turned over both his CEO and Chairman role to Ashley Sweat.

HeliosDX
HeliosDX is a fast growing diagnostics company focused on Behavioral & Urine Toxicology, Infectious Disease, and Allergy using less invasive blood droplet cards. The company’s lab headquarters is located in Alpharetta, GA, and they are opening executive offices in Orange Park, FL on August 1, 2021. The company has enjoyed rapid growth in revenues from 1.7 million dollars in 2018 to 2.6 million dollars in 2019, 4.3 million dollars with an adjusted EBITDA of 1.3 million in 2020, and an expected 6 million dollars in 2021. In addition, they have announced that they expected to close on a major acquisition around September or October 2021. The company has a binding letter of intent to acquire an additional lab earning $10,000,000 in revenue that would result in a projected total revenue of $25 million per year. In addition to the major acquisition, there are two other labs that are being targeted to acquire. HeliosDX conducts its business using some high-powered vendors or business-to-business partners, if you will, such as Cardinal Health (medical device and specimen shipping), ThermoFisher (medical device provider), Verb (medical sales platform), and GoRev (Patient management platform). Verb, ThermoFisher, and Cardinal are all nasdaq companies. These companies are listed on the company website. HeliosDX is already contracted in 44 of 48 states (91% of the country), which means a national presence is already established in advance of the upcoming national sales campaign with Verb and national TV exposure.

Grandeza Healthcare Consultants
HeliosDX has a sister company called Grandeza Health Consultants, located in Tennessee. In its inaugural year, it already operates with $1 million in annual revenue with $30,000 in profit, and is growing alongside HeliosDX, who is its biggest customer. Grandeza Health Consultants will merge into RushNet, Inc., bringing instant added shareholder value above the original Rushnet, Inc. entity. This is likely to happen before HeliosDX is officially split off. For a period of time before the splitoff, RushNet, Inc. will be a parent company with two entities underneath it, all valued into RSHN.

The original Rushnet, Inc.
The original Rushnet, Inc. entity (or what some are calling the legacy RushNet, Inc.) has $60,200 in Joint Venture assets, or “shared financial interests'', primarily with its sister company Gold River Production Services, Inc.. Included in that, are royalty agreements for its ventures with BIEI (Technology Health), HALB (Halberd), LeGanja Fairy, and Able Academics. All of these JVs are either medically focused in hemp, cannabis, and naturally healthy products or they are health and human services realted initiatives (ie. helping Veterans avoid toxic medicines, scaling a profitable school nationwide tailored for autistic children, anti-addiction patch and other natural remedies to combat the opioid epidemic and promote products that fight big pharma). If any of those ventures become successful, the original RushNet, Inc. stands to receive income from that. The original Rushnet, Inc. may or may not still be a substantial shareholder of STNT alongside GRPS. Richard Goulding is the chairman of the board of STNT and GRPS. Learn more by following GRPS. RushNet, Inc. also still has an open trademark application for Knockout Punch, a CBD beverage that was put on hold because of FDA stance on CBD in foods. Unfortunately attempts to acquire funding proved difficult, and Goulding always vowed to not risk going against the FDA, so something needed to take place with RushNet, Inc.

The upcoming Tier 2 Regulation A Offering (Form 1-A) & HeliosDX Stock Dividend
RushNet, Inc. (as it will act as the parent company in this) will file a Form 1-A Tier 2 Regulation A Offering, that will register and list shares of HeliosDX, presumably, but not definitely, on an uplisted exchange with a target AS of 40 million, and a likely OS less than that. This depends on many factors, such as the current RSHN share structure, the current share price, and how many shares are bought at discount at the time of effective date or the day it starts trading. The 1-A offering will specifically state that it is exclusive to RSHN shareholders and that they will get 1 HeliosDX share for every 800 shares of RSHN as a one-time stock dividend (this will take place on its own through brokers, and show up in your account). The Form 1-A will also state that RSHN shareholders can buy up to 11 more shares for every 1,000 at a 50% discount to the share price. The discounted shares are also handled by a broker. All of this is done per SEC rules. HeliosDX will become SEC reporting. If you purchase your discounted shares, you will then get a sweetener of 1 free HeliosDX share for every 10 you purchased at discount. If you buy all your discount, you get close to double the free shares you initially got.

Preparing the Form 1-A is a lengthy and diligent process that includes auditing financials, and massive amounts of paperwork. This will be a multi-month process that ultimately begins when the offering is announced and qualified by the SEC. As part of this process, HeliosDX will become SEC reporting.

Helios DX Stock Dividend & Discount Offering (in short)
1 for every 800 RSHN (no cost) / Can buy 11 more HeliosDX for every 1,000 RSHN at 50% / 1 HeliosDX for every 10 HeliosDX bought at discount (no cost) / You get to keep your RSHN which will be Helios’ sister company. / At the same time, you will have the option to convert your RSHN to HeliosDX.

2nd Stock Divided via Split-off or Spin-Off
At the same time as the 1-A offering, or potentially subsequent to the previous actions, RushNet, Inc. (the legacy Rushnet) will be spun off, leaving Grandeza to stand alone and execute its business plan under the ticker RSHN. However, we have to remember that at certain points down further down the ballfield, the CEO has options. At this point in the line of expected actions, things could change slightly, as they could split off Grandeza too, and leave RushNet, Inc, with its own ticker unchanged after all this. Either way, there will be a second split-off or spin off, and this is where, eventually, we will hold 3 tickers when we originally had 1.

Option to convert your RSHN shares to HeliosDX
In an effort to encourage investment in HeliosDX, and as part of the RushNet, Inc. 1-A offering, RSHN shareholders will be able to convert their shares into HeliosDX shares at a minimum exchange benefit of 10%, but still to be determined. (example 1 HeliosDX for every 300 RSHN shares converted). Mr. Sweat has stated that he would like to see half the shares of RSHN converted into HeliosDX. This will bring significant value to anyone choosing to hold onto RSHN shares, as the outstanding shares would be reduced by half without a reverse split, and that benefits the shareholders in both companies.

Now that we have discussed the 3 entities under RSHN, and the HeliosDX plan, let's take a look at some of the specific information that is important to understand.

Market Cap & Price Per Share
Market Cap = Outstanding Shares (OS) x Price Per Share
RSHN Market Cap at .01 = 7,764,641,795 x .01 = $77,646,418
RSHN Market Cap at .05 = 7,764,641,795 x .05 = $388,232,090

The original share structure of HeliosDX is going to be 1 for every 800 RSHN.
7,764,641,795 / 800 = 9,705,802 Starting OS of HeliosDX, all of which will be held by RSHN shareholders. Float will be locked in other words as it starts to trade on an exchange.

Added to that, will be all the shares purchased at discount. (They are trying to raise a minimum of $8m)
Added to that, will be all the shares given as the sweetener.
Added to that, will be all the shares given to those who convert their RSHN to HeliosDX shares

Mr. Sweat recently said the final number is estimated and contemplated to be around 25 million shares outstanding, with 40 million authorized. 95% of these shares will be held by RSHN shareholders, and 5% Ashley Sweat, with his being preferred and restricted.

Calculating the approximate prospective HeliosDX share price at .01 (current price vs a future target price):
Current RSHN Market Cap at .01... $77,646,48 divided by the 25,000,000 estimated outstanding HeliosDX shares equals a prospective price of $3.11, if RSHN is at .01.

Future RSHN Market Cap at .05...$388,232,090 divided by the 25,000,000 estimated outstanding shares equals $15.53 if RSHN sits at .05 at the ex-dividend date.

This doesn’t take into account if approximate percentages are applied for HeliosDX/Grandeza/RushNet, Inc. The primary most valuable business is HeliosDX, so most of the value will go to HeliosDX anyway, therefore this is a very reasonable estimate of what’s going to happen. Let’s look at a couple of examples if you were to buy and have an average cost of .01.

Stock Dividend for RSHN Shareholders if you hold 10,000 shares at .01:
10,000 shares of RSHN = 13 Shares of HeliosDX (assume rounding up to 13)
RSHN Cost was 10,000 x.01 = $100.
Market Cap of RSHN at .01 is $77.6 million
With a MC at $77.6 million, and only 25 million outstanding (77.6m / 25m = $3.11), your HeliosDX value would be $3.11 x 13 shares = $40.43
With 10,000 shares you would be able to buy up 110 more Helios shares at up to half off. That would be a discount of $171.05 (3.11/2 x 110 shares = $171.05)
The discounted shares would be valued at $342.10.
Lastly, if you are able to participate and buy shares at discount, you will get 1 more free share for every 10 bought. Say you put up the $171.05, you will get 11 more free shares valued at $3.11, totaling $34.21.

Cost of RSHN: $100
Cost of HeliosDX Offering: $171.05
Total Cost $271.05
HeliosDX Value: $40.43 + $342.10 + $34.21 = $416.74
RSHN Value: $100
New Value of 2 Tickers Combined: $507.41
Gain on Investment: $136.36 (87%)

Stock Divided for RSHN holders (10,000 shares) when price increases to .05 before the dividend date
Lets say RSHN goes to .05 in the interim, you will have gained $400 (10,000 shares x .04 increase in pps)
At .05, the new RSHN MC is $388.2 million, therefore the prospective price of HeliosDX share based on 20 million outstanding would now be $15.53 x 13 shares = $201.89.
So now, at .05, you have now gained $400 in value of the RSHN, and you get $201.89 worth of new separate HeliosDX stock, another $100 discount for the discounted shares, and your sweetener of 11 HeliosDX valued at $170.83, and haven’t even considered the potential of Grandeza and the old Rushnet entity to grow beyond .05 OR the 2nd split-off. At .05 your discount is (15.53/2 x 110 = $854.15)

Cost of RSHN: $100
Gain on RSHN: $400
New RSHN Value: $500
Cost of HeliosDX Offering: $854.15
Total Cost: $954.15
HeliosDX Value: $201.89 + $1,708.30 + $170.83 = $2,081.02
New Value of 2 Tickers Combined: $2,581.02
Gain on Investment: $1,626.87 (170%)

Stock Divided for RSHN holders if you hold 1,000,000 shares at .01:
1,000,000 shares of RSHN = 1,250 Shares of HeliosDX
RSHN Cost was 1,000,000 x.01 = $10,000
Market Cap of RSHN at .01 is $77.6 million
With a MC at $77.6 million, and only 25 million outstanding (77.6m / 25m = $3.11), your HeliosDX value would be $3.11 x 1,250 shares = $3,887.50
With 1,000,000 shares you would be able to buy up 11,000 more Helios shares at up to half off. That would be a discount of $171.05 (3.11/2 x 11,000 shares = $17,105)
The discounted shares would be valued at $34,210.
Lastly, if you are able to participate and buy the shares at discount, you will get 1 more free share for every 10 bought. Say you put up the $17,105, you will get 1,100 more free shares valued at $3.11, totaling $3,421.

Cost of RSHN: $10,000
Cost of HeliosDX Offering: $17,105
Total Cost $27,105
HeliosDX Value: $3,887.50 + $34,210 + $3,421 = $41,518.50
RSHN Value: $10,000
New Value of 2 Tickers Combined: $51,518.50
Gain on Investment: $24,413.50 (90%)

Stock Divided for RSHN holders (1,000,000 shares) when price increases to .05 before the dividend date
Lets say RSHN goes to .05 in the interim, you will have gained $40,000 (1,000,000 shares x .04 increase in pps)
At .05, the new RSHN MC is $388.2 million, therefore the prospective price of HeliosDX share based on 25 million outstanding shares would now be $15.53 x 1,250 shares = $19,412.50
So now, at .05, you have now gained $40,000 in value of the RSHN, and you get $19,412.50 worth of new separate HeliosDX stock, another $85,415 discount for the discounted shares, and your sweetener of 1,100 HeliosDX valued at $17,083, and haven’t even considered the potential of Grandeza and the old Rushnet entity to grow beyond .05 OR the 2nd split-off. At .05 your discount is (15.53/2 x 11,000 = $85,415)

Cost of RSHN: $10,000
Gain on RSHN: $40,000
New RSHN Value: $50,000
Cost of HeliosDX Offering: $85,415
Total Cost: $95,415
HeliosDX Value: $19,412.50 + $170,830 + $17,083 = $207,325.50
New Value of 2 Tickers Combined: $257,325
Gain on Investment: $161,910 (170%)

*Both scenarios take into account the full process of buying all of your discount so that you can visualize everything that is in play. For those who choose not to participate in the offering you simply get your 1 for 800 free shares, and the option to trade in your RSHN towards more HeliosDX stock.

*Both scenarios are calculated using an avg cost of .01, but you may have a higher or lower RSHN cost, in which your gains are going to be higher.

Here is an example that shows what happens if you have and hold 100,000 shares of RSHN at .01 and .05. This tells you what the value of your HeliosDX would be if RSHN is at either .01 or .05 at the ex-dividend date. It also calculates all of your dividend, discount, and sweetener. It doesn't take into account if you will be trading in any RSHN. Click Here for Photo Example

The RSHN to HeliosDX Conversion Option
From the announcement:
heliosDX would like to formally announce it will also include the ability to convert qualified shares of Rushnet into heliosDX upon the split-off. A qualified share of RushNet is a share owned on the close of the ex-dividend date. The conversion ratio is yet to be determined but is customarily done at an equal value with an incentive percentage to convert. The incentive percentage has not been determined but will not be less than 10%. heliosDX believes this provides a unique opportunity to bring considerable value to RushNet shareholders and has significant impact on lowering the Share Structure of RushNet, Inc upon split-off. The ex-dividend has not been determined. There will be additional information released in the near-term regarding the ex-dividend date and qualification guidelines.

Example of RSHN Price and effect of reduced outstanding shares via conversion, based on a current RSHN price of .01, and a Market Cap of $77,646,418 for Grandeza. - Click For Photo Example

Example of RSHN Price and effect of reduced outstanding shares via conversion, based on a current RSHN price of .05, and a Market Cap of $$388,232,090 for Grandeza.

Click for Photo Example

In my opinion, if GRPS could acquire all the assets of RSHN ($60,200), that would make it less confusing for everyone who really wanted to invest in a hemp/CBD Beverage company, and Rushnet, Inc simply becomes Grandeza, and there is less confusion moving forward.

Lastly, let’s go over some of the important announcements, updates, and other plans coming down the pipeline.

June 7, 2021 - HeliosDX Announces upcoming major acquisition of private lab
("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. 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.

Letter of Intent - Link

Timeline - Transaction to close in quarter 3 after offering. Funds from offering used to close transaction.

June 16, 2021 - Announcement of National Sales Campaign
("RushNet") with merger/acquisition target heliosDX is pleased to announce the upcoming launch of their National Sales Campaign utilizing Verb Technology Company, Inc. (Nasdaq:VERB) cutting edge interactive sales and marketing platform. (verbTEAMS and verbLIVE).

HeliosDX is preparing to launch a national campaign to increase brand awareness and sales reach. verbTeams is the latest in technology that gives the power back to the company to increase sales, increase close ratios, reduce costs, and increase reach across the country.

HeliosDX Sales & Marketing Video

Timeline - Launch National Sales Campaign Utilizing Verb Technologies - August 1, 2021

July 8, 2021 HeliosDX Merger Officially Closes, and becomes $16m revenue company
RushNet, Inc (OTC PINK:RSHN), ("the Company") is pleased to announce the acquisition of heliosDX was closed and effective July 1, 2021. heliosDX is a National Clinical Reference Laboratory offering High-Complexity Urine Drug Testing (UDT), Behavioral Drug Testing, Allergy Droplet Cards, Oral Fluids, Infectious Disease (PCR), and NGS Genetic Testing. This acquisition brings significant value to RushNet, Inc and its shareholders.

heliosDX had annual revenues in 2019 of $2,639,454.58, 2020 of $4,294,435.82, and in 2021 through the 2nd Quarter of $2,827,582.50. heliosDX expects their current trends to hold and should meet their stretch goal of $6,000,000 for 2021. The company is profitable and has seen profits continue to grow right alongside the revenue growth. The company is also under a Binding Letter of Intent to acquire a privately held Laboratory slated to close late 3rd Quarter or early 4th Quarter. This acquisition will immediately bring heliosDX annual revenues to over $16,000,000 with a tremendous upside.

The combined operations vastly increase the heliosDX specimen capacity, sales representatives, and creates room for future growth in their infectious disease business, which is expected to outpace toxicology within 12 months. In a separate transaction, the company is seeking to purchase the building that the private company currently occupies, which includes an empty space attached for future expansion. This first acquisition should yield annual revenues for heliosDX of $25,000,000 after a full 12 months of combined operations. We believe, as we continue to grow organically, along with acquisitions, we can reach and exceed $50,000,000 in annual revenue within two years.

heliosDX is launching a National Sales Campaign utilizing Verb's interactive technology and hired a Director of Virtual Sales to run this platform. This platform is anticipated to begin on August 1, 2021. We believe this platform will significantly increase the company's ability to reach new clients at a fraction of the cost across the country. In late June 2021, heliosDX extended an offer to hire a Chief Operations Officer (COO), which has been accepted with a start date of August 2, 2021. Other executive positions are currently being explored and formal job postings will be made available on the company's LinkedIn business page. RushNet, Inc and heliosDX have significant plans to reduce the current share structure. We are not prepared at this time to disclose the nature of this reduction but can confirm it is not through a Reverse Split (RS).

HeliosDX Financial Statements
Year Ended December 2020 - LINK
3 Months Ended March 2021 - LINK
6 Months Ended June 2021 - LINK

HeliosDX Website: LINK
HeliosDX OTC Page: LINK
HeliosDX Twitter: LINK

July 15, 2021 - Announcement of Board of Director, Scott Wakeman
Our first Board Member is Mr. Scott Wakeman. Mr. Wakeman currently serves as the Executive Vice President of Operations for Edible Arrangements, where he oversees Store Operations, Customer Service, and Development/Training. Prior to his current position, he managed Marketing, Field Marketing and Creative Services for Edible as Executive Vice President of Marketing.

Before joining Edible in 2019, Scott held a variety of senior marketing roles including Vice President of Marketing at Checkers and Rally's, Head of Marketing and Broadcast for the Houston Astros and Group Vice President at Grey Advertising. Mr. Wakeman began his career in packaged goods and has served in general management roles at several Fortune 500 companies, including Colgate-Palmolive, L'Oréal and Bacardi. Mr. Wakeman is an alumnus of Emory University where he received a Bachelor of Arts degree with honors in Political Science and captained the varsity basketball team. He also received an MBA from Duke University. You can view Mr. Wakeman's linked in profile by Clicking Here.

heliosDX feels extremely fortunate to be able to add such talent to its Board of Directors. The company recently finished its Phase One rebranding strategy from Chattahoochee Labs to heliosDX. The company is preparing to launch a national sales campaign in the coming weeks to further its already rapidly increasing footprint. The campaign is designed to accomplish two goals. The first goal is to grow our sales reach and gain incremental new business across the country. The second goal is to utilize the national sales campaign as a mechanism of pushing the heliosDX brand further, in what we are calling Phase Two. heliosDX believes Mr. Wakeman's experience in senior leadership with marketing and operation roles brings many synergies with the national branding and marketing efforts currently ongoing. Mr. Wakeman will be a vital asset serving in an advisement capacity to heliosdX as we continue to create brand awareness nationwide.

July 28, 2021 - Announcement of COO, Yann Gerville-Reache
RushNet, Inc (OTC PINK:RSHN), ("the Company") with its subsidiary heliosDX is pleased to announce Yann Gerville-Reache has been appointed to serve as the COO for heliosdX.

Mr. Gerville-Reache will join the Executive Team in Orange Park, FL to assume the role of Chief Operations Officer. His experience encompasses 20 years of operations within various industries including Transportation, Supply Chain, and the Energy sector. He brings his expertise supported by his certifications in lean manufacturing, project management, and supply chain management. With his diverse operational skillset, heliosDX will concentrate his efforts to support the setup and streamlining of people, processes, and systems which we believe will add significant value given his history in management at global corporations including CEVA Logistics (CMA CGM), Yusen Logistics (NYK), APR Energy (Atlas Corp), and through services and support of customers such as Nokia (formerly Alcatel Lucent), GSK, Medtronic, Nike, and other companies from various sectors.

Mr. Gerville-Reache officially assumes his role beginning August 2, 2021. We are extremely excited to have Mr. Gerville-Reache join the growing team at heliosDX. His expertise is needed and will be used immediately as he will be working directly on the National Sales/Branding System, Customer System Experience, as well as internal systems and operations.

July 26, 2021 - Announcement of 6 Part Interview
RushNet, Inc (OTC PINK:RSHN), ("the Company") is pleased to announce a 6 Part interview series to be conducted by FMW Media's New to The Street/ Newsmax. Several nationwide media outlets will broadcast the interview, including Fox Business, Bloomberg Network, Newsmax, KRON, RNN, and potentially other outlets. The reach of these networks is in excess of over 300 Million homes.

Sun., Aug 1 NEWSMAX 10AM EST
Mon., Aug 2 FOX Bus. 1030PM PST
Tues., Aug 3 Fox Bus. 1030PM PST
Sat., Aug 7 Bloomberg 430PM EST
Sun., Aug 8 NEWSMAX 10AM EST
Mon., Aug 9 Fox Bus. 1030PM PST
Tues., Aug 10 Fox Bus. 1030PM PST

The “2nd Interview” is anticipated to include a first time announcement of the next acquisition, which is anticipated to be Grandeza Healthcare Consultants, which will in essence become the parent company of Rushnet, Inc. It could also be another lab acquisition, as they have two other acquisition targets that were announced.

July 27, 2021 - FMW Media Commences Massive TV Commercial and Outdoor Digital Billboard Campaign for RushNet, Inc. (RSHN)
FMW Media Works, Inc. in conjunction with its New to The Street TV show announces its contract with RushNet, Inc. (a.k.a – heliosDX) (OTCPink: RSHN) in the production, broadcasting and distribution of commercials and digital billboards.

The agreement calls for 660 commercials, 110 per month for the next 6-month, and it includes 156 digital billboards, running 3–times per hour located throughout lower Manhattan, New York City, NY. The televised commercials can be seen over the next 6-months on Fox News, Bloomberg, Fox Business Network, CNN, CNBC, Newsmax TV and MSNBC.

RushNet, Inc. (heliosDX) (OTCPink: RSHN) believes this massive commercial and billboard campaign will provide patients, medical doctors, medical personal and healthcare facilities the knowledge and the branding of its heliosDX lab testing products, lab platforms, and services and facility available in the majority of the US.

Remember, the only way for people to get HeliosDX is to invest in RSHN. This marketing campaign is intended to drive to people into RSHN so that they CAN participate in the offering and invest in HeliosDX. At the same time, drives massive attention to RSHN. If you don't have RSHN, you will have to buy HeliosDX after it starts trading, and RSHN shareholders will be holding the float.

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Written by D-Money6 on IHUB / @USA_603 on Twitter for RSHN shareholders. I am not a financial advisor, and this is not financial advice. These are my own notes. I am long RSHN.