Hi everyone:
First, in case that anyone on the thread doesn't know, an 8-k is simply a disclosure document that is filed with the SEC that handles disclosures (i.e., news items, etc.) which occurs between 10-Q filings.
After some good digging through the files and the net, I think I have
pulled together a picture of this company that you will find
interesting. Please feel free to pose questions.
Medix Resources, formerly International Nursing Services, was
incorporated in Colorado on Apil 22, 1988. In August of that year, it
completed a self-unerwritten public offering of 150,100 units which
consisted of one share of common stock and one redeemable warrant.
In 1994, it completed an IPO of 224,000 units with each unit consisting
of two shares of preferred stock, one share of common stock and three
1994 warrants. Gross proceeds from this totaled to $5,287,500 of which
a portion was used to fund two acquisitions.
Again in 1996, two more acquisitions were made with a third in 1997.
These acquisitions were paid for in various amounts of cash and stock.
In September of 1997, the company sold its Denver home care and
certified medicare provider operations for $200,000 cash.
The following month, October, the company sold its assets and business
of one of its New York operations, Paxxon Services. It also entered
into a definitive agreement to sell the other two New York operations,
Ellis and STAT, for $2,080,000 in cash, subject to the usual approval
process. Those three New York operations offices provided $10,262,000
in revenue in 1997.
A $1.0 million bridge financing loan was repaid in 1997 and in June of
1997, a $5 million revolving credit facility was secured.
The company acquired Cymedix Corporation in January of 1998. The
funding of this acquisition came from the proceeds from the sale of its
New york Offices which brought it into the medical information software
business. Cymedix Lynx Corporation, a Colorado corporation, and the
company issued 6,980,000 shares of its Common Stock to the shareholders
of Cymedix and granted or committed to grant options covering 1,200,000
shares of the Company's common stock to employees of the subsidiary.
Cymedix was organized in 1995. Its two software products, Cymedix Lynx
and Sherpa Universal Data Interface (Sherpa) are now being marketed to
the medical community.
A press release on April 28, 1998, stated the intention of Medix
Resources to sell its remaining staffing business to Banyan Healtcare
Service to focus on the medical information aspect of the business.
About the Lynx product:
The Lynx product manages remote information distribution in the
healthcare industry. The Sherpa product manages information
integration. Together, they provide physicians with a permanent ongoing
record of their patients insurance, managed care affiliation, referral
status, medical history, and diagnosis. They also utilize relational
database technology. Cymedix Lynx is totally secure and utilizes the
internet to replace the faxes, telephone, mail, or private network
communications currently in common usage.
Rather than market to physicians, the target market of the Cymedix Lynx
product is HMO's, hospital-based physicians networks and clinical
laboratories who in turn offer the product without charge to
physicians. Doctors can write medical orders, make eligibility checks,
authorization of care and doctor referrals more efficiently and in a
more cost effective manner.
Profits will come from fees that are collected on a per transaction
basis with the fee being based on the transaction being done.
The product is currently in use at Loyola University Medical Center in
Chicago under a three year contract. In this sale, the Medical Center
will be networked with 200 physicians minimum affiliated with the
medical center's laboratory services outreach rogram. Affiliate
hospitals of Loyola are expected to be added in the future, threby
increasing the potential number of physicians utilizing Cymedix Lynx
throughout the Chicago area to more than 1,000.
A patent application was filed in October of 1997 covering the Cymedix
Lynx product. That application is currently under review by the Patent
and Trademark Office. In April of 1998, Cymedix Lynx was granted four
75-Year copywrites by the U.S. Copyright Office for its products.
Legal Issues:
A company press release, dated March 19, 1998, stated that Cymedix Lynx
had submitted a software theft demand letter against ANDRX Corporation
and Cybear, Inc for treble damages in the amount of $396.6 million.
This amount represents projected income for the first five years of
$132.2 million. Also, Cymedix intends to file under Florida's RICO law,
a claim against Andrx, Cybear and certain individuals employed by Andrx
regarding computer-related crimes.
Andrx responded that same day with a public denial of these charges.
ADRX has since filed a suit against MDIX stating damages due to slander
and libel in the Florida courts.
This issue has not been settled to date. |
