Rushnet, Inc Announces Debt Restructuring to Greatly The original purchase amount of the laboratory was for $6,000,000 and currently with the new amortization schedule the company has an outstanding balance of approximately $4,400,000. The amendment to the current debt liability will allow heliosDX to defer payment until March 31, 2023, at an interest rate of 2% above prime on the monthly payment, and not the sum of the overall balance. This is a significant advantage for heliosDX as the company is paying very little in interest to push the debt payments until 2023. heliosDX and the debtee have the right on a quarterly basis to end the restructuring should it no longer be needed.
The advantage of such restructuring significantly impacts heliosDX and the bottom-line. As we've progressed through the spinout process from Rushnet Inc., with subsequent increased expenditures from legal counsel, accountants, auditors, and other one-time costs, we have seen our profits erode as indicated in Quarter 1 financials. This will immediately relieve pressure.
The restructuring allows the company to immediately impact profitability and cash flow. In addition, it allows the company to avoid any adverse loan debt refinancing which would be a detriment to the business and shareholders.
This restructuring would not have been possible without the willingness of the debtee to understand and buy into the long-term vision of the company and its goals. heliosDX would like to offer a sincere thank you to the previous management of Chattahoochee Physicians Laboratory Services for truly acting as a partner and adjusting the terms of debt in the best interest of the company and its shareholders.
https://www.accesswire.com/702138/rushnet-inc-announces-debt-restructuring-to-greatly-increase-profitability-and-cash-flow