UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report: April 15, 1999
MEDIX RESOURCES, INC
(Exact name of registrant as specified in its charter)
Colorado 000-24768 84-1123311
(State or other (Commission (IRS Employer
jurisdiction (File Number) Identification No.)
of incorporation)
7100 East Belleview Ave., Suite 301, Englewood, CO 80111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 741-4828
None
(Former name or former address, if changes since last report)
Item 5. Other Events
Press release dated April 15, 1999 announcing expansion of Board, completion of
private placement and plans for note repayment.
Exhibit No. Description Reg. S-K Item No.
- ----------- ----------- -----------------
*99.1 Press release 99
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MEDIX RESOURCES, INC.
Date: April 19, 1999 By:/s/ John P. Yeros
John P. Yeros, President and Chief Executive
Officer
FOR IMMEDIATE RELEASE
MEDIX RESOURCES, INC. EXPANDS BOARD, COMPLETES PRIVATE PLACEMENT AND
PLANS FOR NOTE REPAYMENT
Denver, Colorado- (Business Wire)- April 15,1999 - Medix Resources, Inc. (OTCBB:
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 wase filed
with the Securities and Exchange Commission on April 12, 1999. Such information
is available from the SEC or from the Company.
Company Contact:
John P. Yeros Gene Martineau
303-741-2045 212-348-1880
