Medix Resources, Inc. Expands Board, Completes Private Placement and Plans for Note Repayment
PR Newswire, Thursday, April 15, 1999 at 16:11
DENVER, April 15 /PRNewswire/ -- Medix Resources, Inc.
(BB: MDIX) today announced the expansion of its Board of
Director's to include four additional members. The expansion was implemented
to help support the anticipated growth and development of the company's
Internet based healthcare communications subsidiary, Cymedix Lynx Corporation.
("Cymedix"). Medix also announced the completion of a $300,000 private
placement of its Series A Preferred Stock and its intention to repay a
$250,000 loan to Cymedix from Global Med Technologies, Inc. ("Global Med")
following a payment demand from Global Med.
The decision to expand the Medix Board stems from a desire to add
expertise in various fields germane to the medical informatics industry that
Medix entered with its acquisition of Cymedix in January, 1998. Cymedix
provides connectivity solutions through an E-commerce model to physicians,
industry service providers and health plan insurers. Cymedix.com., the
company's proprietary software product introduction, employs Internet
technology to enable industry participants to effectively communicate vital
medical, financial and administrative information over private, secure
networks. Utilization of Cymedix.com is expected to expedite standard
administrative transactions, simplify communications, improve patient care and
significantly reduce the cost of that care throughout the healthcare
enterprise.
To help exploit this technology, Medix has added to its Board of Directors
four highly qualified individuals with expertise in relevant industry
segments. They are expected to contribute vital assistance and guidance
necessary to optimize the commercial value of the Cymedix technology.
John Yeros, Medix's CEO and Chairman of the Board stated, "Our Cymedix
subsidiary is transitioning from a research and development focus to a fully
operational provider of medical E-commerce solutions. As its parent company,
Medix is striving to furnish Cymedix with the support necessary to complete
this transition. The expansion of our Board of Directors is a vital component
of this commitment. I am pleased to welcome the new Board members, excited by
the intelligence, vitality, and experience they bring to our enterprise and
confident their contributions will assist us in achieving our goal of
maximizing shareholder value."
The new members of the Medix Board of Directors and a brief biographical
sketch is set forth below:
Joel C. Newman, M.D. is the Managing Director of The Fountainhead Group
LLC, a merchant banking firm he founded in June, 1998, to specialize in the
healthcare sector. Dr. Newman began his investment banking career in 1985 and
was Director of Healthcare Mergers & Acquisitions at Merrill Lynch & Co. for
five years before founding his own firm. He is a graduate of Johns Hopkins
School of Medicine.
Douglas Stahl is an attorney specializing is securities and corporate law.
He is the Managing Partner of Stahl & Zelmanovitz, a New York City law firm he
founded in 1989. He began his career as a law clerk with the New York Court
of Appeals and is a graduate of Brooklyn Law School, where he served as
Editor-in-Chief of the Brooklyn Law Review.
John R. Prufeta is the Managing General Partner of The Creative Group and
Creative Health Concepts. He is also the President and Chief Executive
Officer of Creative Management Strategies, and General Partner of TCG
Development. These companies cover a wide spectrum of services within the
healthcare industry, including organizational services to healthcare
start-ups, recruitment and talent development, management consulting and
network development for physicians and hospitals.
Brian McLean, M.D., is an M.D./MBA anesthesiologist with an investment
focus on healthcare venture capital. Dr. McLean is a limited partner in
Hudson Partners, an SBIC venture fund and serves on the Board of Directors of
Amarillo Biosciences, as well as several private companies.
In addition to its Board expansion, Medix announced the completion of a
private placement for $300,000 of its Series A Convertible Preferred Stock to
a small group of investors. The new issue is convertible into common stock at
a conversion price of $0.25 per share, subject to customary antidilution
provisions. Proceeds from the placement will be used for general corporate
purposes.
Finally, Medix announced that it received from Global Med Technologies,
Inc. a demand for repayment of a secured loan made to Cymedix in February,
1996. The loan is secured by Cymedix's assets. Principal and unpaid interest
on the loan at March 31, 1999, totaled approximately $343,000. Medix expects
to repay the loan with cash or a combination of cash and stock. The company
appreciates the support provided by Global Med during the formative stages of
Cymedix and looks forward to a continuing relationship.
Denver based Medix Resources, Inc. is engaged through its wholly owned
subsidiary Cymedix Lynx Corporation of Thousand Oaks, California, in providing
several fully secure patent-pending Internet medical communications products,
using an E-commerce business model. Historically, the company's core business
has been providing 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 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 10-KSB for 1998
that was filed with the Securities and Exchange Commission on April 12, 1999.
Such information is available from the SEC or from the Company.
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