DENVER--(BW HealthWire)--May 18, 1998--Medix Resources, Inc.
(Nasdaq: MDIX) today announced that the Company's Board of Directors,
at a special meeting held Tuesday, May 12, has authorized management
to investigate the adoption of a Company shareholders' rights plan. In
addition, the Company's Board of Directors has authorized the
engagement of special legal counsel to advise the Board in the event
of a tender offer, and an investment banking firm to provide valuation
and full-service investment banking services. The Board also
authorized the expansion of the size of the Board from three to six,
and is currently seeking potential Directors. Two Board members will
stand for re-election every year for three-year terms.
John P. Yeros, chairman of Medix Resources, stated, "The
Company's Board of Directors has agreed to consider the adoption of a
shareholders' rights plan to defend against an unsolicited takeover
bid. Such a plan will allow the Company's Board to assess any takeover
bid on a fully informed basis and, if appropriate, to pursue other
alternatives to maximize shareholder value. With the recently
announced disposition of the Company's remaining supplemental staffing
businesses, the Company's Board believes that at this time it is
necessary to take every precaution to maximize shareholder value in
the event of an unsolicited takeover."
Mr. Yeros added that these steps are precautionary and that the
Company has not been approached by a potential acquiring entity.
Medix Resources, Inc., through its wholly owned subsidiary
Cymedix Lynx Corporation, offers several fully secure patent-pending
Internet communications products, using an Internet commerce business
model. The Company's core business also 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.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release that 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, filed with the Securities and
Exchange Commission on March 30, 1998. |
