Zynex Inc. (ZYXI)

[Knowledge is King]

re ZYNX: fresh supply released


After the close today, ZYNX filed an 8-K and associated registration statement covering 1.74 million shares issued upon the forced exercise of warrants at $.39/share. Will these shareholders be happy to take their 4+ bagger off the table in the coming days and weeks? We'll know shortly....

Here's the details...


On January 25, 2008, Zynex Medical Holdings, Inc. (“Zynex”) notified holders of warrants issued by Zynex in 2006 and 2007 pursuant to a private placement that such warrants would terminate 30 days following the notice. The termination of the warrants was permitted because Zynex’s stock has traded in excess of 200% of the exercise price of the warrants for more than 10 consecutive days. As a result, each warrant holder had 30 days from the date of such notice to exercise their warrants or the warrants would terminate.


By February 26, 2008, all of the warrants were exercised. Zynex issued 1,740,000 shares of common stock for an exercise price of $0.39 per share, or an aggregate exercise price of $678,600. Each of the recipients of the common stock represented to Zynex that it is an accredited investor, and Zynex believes that the sale of its common stock pursuant to the warrant exercise is exempt from registration under Rule 506 promulgated under the Securities Act of 1933, as amended. Zynex will use the exercise price proceeds for working capital purposes.