We got some more news, but the market doesn't seem to care:
Headline: Medix Resources Repurchases Convertible Preferred Stock, Exchanges
Warrants for Common Stock
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DENVER--(BW HealthWire)--April 6, 1998--Medix Resources, Inc.
(NASDAQ:MDIX), formerly International Nursing Services, Inc., today
announced that it has signed an agreement with two private investors
which will allow Medix to repurchase 80 of its outstanding units of
convertible preferred stock and warrants from the 1997 private
placement for $800,000 at face value over the next five months. This
agreement also allows these investors the option to convert to common
stock any balance owed in September 1998. Prior to this transaction,
there were approximately 100 convertible preferred units outstanding,
or $1.0 million of convertible preferred stock, from the 1997 private
placement. The 1997 issue of preferred stock allowed investors to
convert the preferred stock into common stock at 75% of market price.
This agreement eliminates those conversion rights. Also, the
convertible preferred stock carries no dividend.
Additionally, the company today announced it exchanged 1,402,000
warrants from the 1996 and 1997 private placements for 174,500 newly
issued shares of the company's common stock. Together with the above
repurchase, these transactions reduce outstanding warrants by
2,202,000. Prior to these transactions, there were approximately 3.5
million warrants outstanding from the 1996 and 1997 private
placements, exercisable at $0.625 and $1.00, respectively. The company
intends to redeem additional warrants issued from the 1996 and 1997
private placements under terms similar to the recently completed
exchange.
John P. Yeros, chairman of the company, stated, "The combination
of the warrants exchanged and the warrants repurchased eliminates two-
thirds of all of the outstanding warrants from the 1996 and 1997
private placements. It has been our continued objective to simplify
our capital structure in an effort to achieve our business
initiatives. We believe both the exchange of warrants and the
repurchase of convertible preferred stock supports this objective,
while at the same time effectively eliminates conversions and share
dilution. This agreement is in the best interest of the company and
its shareholders."
Medix Resources, Inc. is a healthcare services company with two
synergistic lines of business. The company provides skilled nursing,
therapy, rehabilitation and other medical personnel for flexible
staffing in home care, and in a broad spectrum of healthcare and
educational facilities. Through its wholly owned subsidiary, Cymedix
Lynx Corporation, the company also offers Cymedix Lynx, a secure,
patent-pending medical communications product that makes use of the
Internet to facilitate more cost-efficient patient care.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release which are
not historical facts contain forward-looking information with respect
to plans, projections and/or future performance of the Company, the
occurrence of which involve certain risks and uncertainties detailed
in the Company's Form 10K-SB for 1997 that was filed with the
Securities and Exchange Commission on March 30, 1998.
CONTACT: Company Contact:
Medix Resources, Inc.
John P. Yeros
(303) 393-1515
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Bruce Voss (bruce@lhai.com)
(310) 575-4848
Sue Yeoh (sue@lhai.com)
(212) 838-3777
KEYWORD: COLORADO
INDUSTRY KEYWORD: MEDICINE
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