Over the past week, the RushNet Inc (OTCMKTS:RSHN) stock has emerged as major gainer and has managed to clock gains of as much as 170%. There have been certain developments which have brought legions of investors to this stock and it might be the right time for others to take a closer look at those developments.
Yesterday, the company, along with its merger target heliosDX announced that the proposed reverse split of the stock has been officially cancelled. In order to reflect this move, the company will submit a filing to the Colorado Secretary of State with regards to the cancellation.
In order to get a better idea about the current excitement around the RushNet stock, it might be a good move to get a good look at the company’s merger/acquisition target heliosDX. The company falls under the category of a National Independent Clinical Reference Laboratory and is known for offering a wide range of tests.
At this point in time, heliosDX has contracts in as many as 44 out of the 48 states in the country, however, the company is looking to expand its footprint further. Hence, it is not a surprise that the proposed merger with RushNet has resulted in optimism among investors.
The expansion plans are going in the right direction as well and earlier on in the week, it was announced that heliosDX signed a letter of intent with regards to the acquisition of a privately owned laboratory. The laboratory has the capability of processing 5000 tests every month in addition to as many as 12000 UDS tests.
At this point in time, it has annual revenues of $10,000,000, and hence, it could prove to be a major acquisition for heliosDX as it tries to further strengthen its capabilities. This expansion is not only expected to widen heliosDX’s footprint across the country but also reduce its costs of doing business.