PALM CITY, Fla., Aug. 16, 2010 (GLOBE NEWSWIRE) -- Connectyx Technologies Holdings Group, Inc. (Pink Sheets:CTYX) ("Connectyx"): I am very pleased to be able to communicate to our loyal shareholders directly and to give you an update on our progress to date.
Over the past months management and the Board of Directors has been developing what it believes to be an organizational restructuring that will facilitate the process of securing a long term capitalization plan for the Company, making it possible to properly execute the MedFlash® business strategy.
The details of this plan are as follows:
Connectyx Technologies Holdings Group, Inc. will remain the parent holding corporation for which two new wholly owned subsidiary corporations have been formed:
- MedFlash IP Corporation, a Delaware corporation, which will become the entity to hold the MedFlash intellectual property and technologies.
- MedFlash International Corporation, a Florida corporation, which will become the sole licensee to sell the MedFlash® product(s)
- All standard business operations and new product development will continue to operate from Connectyx Technologies, Inc.
Management is also sensitive to the current CTYX market price, number of shares in the public float and the volatility of the stock, but must remain 100% focused on growing the MedFlash® subscriber base, increasing company revenues and securing the long term capitalization plan in order to execute the MedFlash® business strategy.
Management and the Board of Directors also believe it is in the best interest of the Company to recommend a 1- for- 50 reverse stock split of the Company's common stock ("Reverse Split"). In accordance with the Florida Business Corporation Act, the Company has received written consents from the shareholders holding a majority of the issued and outstanding shares of voting capital stock of the Company approving an amendment to our Second Amended and Restated Articles of Incorporation to effect the Reverse Split.
A Certificate of Amendment has been filed with the Secretary of State of the State of Florida and the Reverse Split will take place on August 23, 2010 ("Effective Date"). Any fractional shares resulting from the Reverse Split will be rounded up to the nearest whole share of common stock. No further action is necessary by you in connection with the Reverse Split and you are not entitled to dissenter's rights. Each certificate representing shares of common stock outstanding as of the Effective Date will thereafter represent the corresponding number of post-Reverse Split shares.
The Company's financial advisors recommended that we take this action in order to increase our ability to attract future financings. It is common practice for companies to effect a reverse stock split in anticipation of and/or preparation for financings of various types, and we believe a reverse stock split will position our capital structure more favorably for future investments. We believe that the resulting new corporations along with revised capitalization structure will be instrumental in our ongoing discussions with potential investors. This is being facilitated with our investment banker from Statis Equities, LLC and others, who are reviewing at the time of this letter a long term capitalization plan for the Company.
Connectyx also released its second quarter disclosure statement and financial report on August 14th in accordance with the Pinksheets filing guidelines. These reports can be reviewed by visiting www.pinksheets.com under our symbol – CTYX, filings.
Connectyx's management team and its board of directors has continued to make it one of its top priorities to actively find and secure the necessary financing, which includes working capital to commence a national advertising campaign, as well as, completing the development of its proprietary MedFlash product platforms. It is also important to note that 2012 will be the year when the health care community will be required to provide Personal Health Records to patients as part of its compliance with the "Meaningful Use," requirements of the Health Information Technology for Economic and Clinical Health Act (HITECH Act), which management believes will strengthen our position in this growing market.
Over the six past months, management has continued to work with the small tranches of working capital to further market, develop and deliver a leading personal health manager to a variety of consumer markets. MedFlash®, which was granted a registered trademark in May 2010, continues to gain momentum and management is encouraged by the improving growth rate we have observed over the past 12 months with new members signing up every week. One of our newest MedFlash® programs is our Concierge service, which offers MedFlash subscribers the opportunity to schedule an appointment to speak with a health care professional directly via phone, giving them the confidence that their health profile is both thorough and accurate. This exciting enhancement also allows subscribers that do not have online or computer access to join the MedFlash® community, which includes many exciting wellness programs, benefits and an easy to use personal health manager.
In order to maximize the Company's use of capital, management has redirected its efforts to a more efficient approach within the personal health and wellness marketplace. I am pleased to announce that management has identified new consumer channels for the Company's products and programs. These new channels, which include marketing directly to large membership organizations, have shifted the responsibility of selling to the end user to these organizations. Moreover in some cases they are amenable to providing MedFlash® as part of a membership package, thereby promoting it on our behalf. Along a similar vein, we have aggressively begun to market our licensing model, which is a membership to the portal without a USB device. This has allowed us to offer an annual membership at a lower cost (and higher margin) with the possibility of an up-sell to the device at a later date. Additionally, management believes that this will give us the flexibility to offer a revenue share to our strategic channel partners, thereby offering a greater incentive for them to market MedFlash®.
On behalf of all of us at Connectyx, I thank you for your continued support of our Company. Together we believe that we can profitably change the paradigm in consumer healthcare and lifestyle management and potentially help save lives.
Sincerely,
Ronn Schuman
President & CEO
About Connectyx :
Connectyx Technologies provides unique products for the healthcare market including MedFlash®, the electronic Personal Health Manager (PHM). Compatible with Google Health and Microsoft's Health Vault, the MedFlash® PHM is an easy to use Personal Health and Lifestyle Manager that is accessible using a powerful web portal suite. The MedFlash® PHM also features a 24/7/365 call center, a USB flash drive and our (soon to be released) smart phone applications. The MedFlash® PHM provides member benefits including instant access to your Emergency Medical Profile and Personal Health Record in the event of an accident or a medical emergency. Whether traveling, at work, or at home, First Responders have an invaluable advantage when they have access to this time critical information. Far more than just an emergency flash drive, the MedFlash® PHM can be accessed on any computer, securely and with complete privacy. There are also lifestyle and wellness features that provide significant health benefits to members and risk mitigation for employers and insurers alike. Connectyx products are developed with the needs of patients, families, doctors and First Responders in mind. For more information, please visit our websites at: www.connectyx.com and www.medflash.com
Safe Harbor Act: This communication includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this communication.