Tuesday April 28, 7:52 am Eastern Time
Company Press Release
Medix Resources Signs Definitive Agreement For Sale Of
Remaining Staffing Businesses
- Company values current transaction at $7.0 million in cash and securities; Total
staffing business sale valued at $9.0 million -
DENVER--(BW HealthWire)--April 28, 1998-- Medix Resources, Inc. (Nasdaq: MDIX - news)
today signed a stock purchase agreement with Banyan Healthcare Services, Inc. (OTC Bulletin
Board: BANH - news) for the sale of Medix's remaining wholly owned home health and
nursing services subsidiaries, National Care Resources - Texas, Inc., National Care Resources -
Colorado, Inc. and TherAmerica, Inc., subject to certain closing conditions, including the
receipt of sufficient financing. Banyan Healthcare Services, through its operating subsidiaries
and companies, provides home health therapy services and products throughout the Eastern
United States, and once Banyan's recently announced merger agreement with NuMED Home
Healthcare, Inc. is closed, will also provide related home health and professional contract
staffing services.
Under the terms of the agreement, Banyan will purchase the remaining subsidiaries for $5.0
million in cash and $2.0 million in newly issued non-voting convertible preferred stock in,
once combined, the Banyan/NuMED entity. The company expects that this transaction will close
prior to September 30, 1998. In October 1997, the company entered into an agreement to sell
its New York operations to Banyan Healthcare Services, Inc./National Health Enterprises, Inc.,
which is subject to regulatory approval by the State of New York and the transfer of the
necessary licenses. Once the licenses are transferred, the company will receive $2.0 million in
cash. The company estimates that upon closing, the sale of its remaining business subsidiaries,
along with the previously announced asset sale of its New York offices, will total
approximately $9.0 million in cash and stock.
John P. Yeros, chairman of the company, stated, ''While the company's core business in
supplemental staffing has largely contributed to the growth of Medix, we are confident that at
this time the disposition of these assets is in the best interest of the company and its
shareholders. The company's acquisition of Cymedix Corporation and its proprietary Cymedix
Lynx, a unique Internet-based medical software product, has positioned us to take advantage of
the growth opportunities in the medical information and Internet commerce marketplaces. With
the support of the company's board of directors, we have made a strategic decision to focus our
sole efforts on this emerging market, which we believe holds great potential for the future of
our company.''
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 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
or
Cymedix Corporation
Keith Berman, 805/230-1133
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Keith L. Lippert (keith@lhai.com)
Sue Yeoh (sue@lhai.com)
212/838-3777
Bruce Voss (bruce@lhai.com)
310/575-4848 |
