KCSA
PUBLIC RELATIONS
WORLDWIDE News
Public & Investor Relations, Corporate & Marketing Communications
Exhibit 99.2
FOR: MEDIX RESOURCES, INC.
CONTACT: John R. Prufeta, President and CEO
(212) 697-2509
(212) 681-9817 (fax)
[email protected]
KCSA INVESTOR Christine Scandia Stone / Sarah Shepard
CONTACTS: (212) 896-1270 / (212) 896-1236
(212) 697-0910 (fax)
[email protected] / [email protected]
FOR IMMEDIATE RELEASE
MEDIX RESOURCES CLOSES ON FINANCING
PROVIDING $2.5MM FROM A PRIVATE INVESTOR
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NEW YORK, January 12, 2001 - Medix Resources (AMEX: MXR), the e-health
connectivity technology Company, today announced the closing of a private
placement of a line of credit for convertible debt with a single undisclosed
investor, which will permit Medix to draw down up to $2,500,000 over the next
ten months if conditions for the draw-downs are satisfied. Medix drew down
$750,000 of the line at the closing.
Interest on the funds advanced will be 10% per annum, and the debt will
mature on January 10, 2002. Under certain circumstances, at the Company's
option, the debt may be paid in shares of the Company's common stock pursuant to
a formula based on the then market price of such stock. The debt is convertible
at $0.90 per share for the first $750,000 drawdown and $1.00 for the remainder.
Future draw-downs are conditioned upon the bid price of the Company's
common stock exceeding $1.00 per share, and the effectiveness of a registration
statement to permit the investor to sell common stock into which the debt may be
converted and which may be issued upon the exercise of warrants issued to the
investor in connection with the line of credit. The investor will be issued
warrants to purchase up to 1,250,000 shares of Medix common stock, as draw-downs
occur. The exercise price for such warrants is $1.75, subject to adjustment in
certain circumstances. The funds will be used to support ongoing working capital
needs pending a more substantial private equity placement in the near future.
Medix Chief Executive Officer, John R. Prufeta commented, "It is extremely
gratifying to see continued interest in our Company among investors, despite a
difficult capital market for all technology sectors--with e-health no exception.
We enter the new year with excitement and enthusiasm as we move into the
deployment stage of our connectivity technology in joint effort with major
strategic partners in the healthcare industry."
About Medix Resources, Inc.
Medix Resources, Inc. through its wholly owned subsidiary Cymedix Lynx
Corporation is the developer and provider of the Cymedix.com(R)suite of
fully-secure, patented Internet based software products, that will allow
instantaneous communication of high value added healthcare information among
doctor offices, hospitals, health management organizations and insurance
companies. Additional information about Medix Resources and its products and
services can be found by visiting its Web sites, www.medixresources.com and
www.cymedix.com, or by calling (800) 326-8773.
# # #
Information in this press release contains forward-looking statements that
involve risks and uncertainties that might adversely affect the Company's
operating results in the future to a material degree. Such risks and
uncertainties include, without limitation, the ability of the Company to raise
capital to finance the development of its software products, the effectiveness
and the marketability of those products, the ability of the Company to protect
its proprietary information, and the establishment of an efficient corporate
operating structure as the Company grows. These and other risks and
uncertainties are presented in detail in the Company's Form 10-KSB for 1999,and
its Form 10-QSB for the third quarter of 2000, which were filed with the
Securities and Exchange Commission on March 30, 2000, and November 14, 2000,
respectively. This information is available from the SEC or the Company.
This press release and prior releases are available on the
KCSA Public Relations Worldwide Web site at www.kcsa.com
800 Second Avenue Tel 212 682 6300 E-mail [email protected]
New York, NY 10017 Fax 212 697 0910 www.kcsa.com
