HealthSonix Sells Operating Subsidiaries to Innovative Health Sciences
IRVINE, Calif., July 14 /PRNewswire-FirstCall/ -- HealthSonix, Inc. (FWB:H7S) today announced that Innovative Health Sciences, Inc. has purchased two wholly owned subsidiaries of HealthSonix, Inc. in exchange for 35,356,000 IHSI common shares.
"Selling the two operating companies to Innovative Health Sciences (http://www.InnovativeHS.com) will immediately allow the companies to resume full operations and get back to implementing their business plan," said Dieter Doederlein, Vice President Corporate Development for HealthSonix. "As part of the agreement, Innovative Health Sciences has committed to injecting significant working capital into the operations to expedite the delivery of the Gen II hand held enSonix medical devices and to allow us to expand the distribution of the ZingiberRx Joint and Muscle cream," added Doederlein.
All HealthSonix shareholders of record as of July 14, 2008 will receive IHSI shares on a pro rata basis in exchange for their HSXI shares. The anticipated exchange ratio is .6 IHSI shares for every 1.00 HSXI share. The shares will be distributed to our shareholders in due course.
"Effectively, the current HealthSonix shareholders, as a group, become the majority shareholders in IHSI," said Chris Winter, CEO of Innovative Health Sciences. "Our management and our shareholders are extremely pleased with this acquisition, and we look forward to making our contribution to the immense growth potential and anticipated success of the HealthSonix products."
Following the completion of the transaction, HealthSonix, Inc. will change its name to HSX Holdings, Inc.
HSX Holdings, Inc. (formerly HealthSonix, Inc. - HSXI) is a holding company with ownership interest in Innovative Health Sciences, Inc. [IHSI]. All current HSXI shareholders have indirect ownership in IHSI. For more information, please visit http://www.hsxholdings.com.
Note: A number of statements contained in this news release are forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors not set forth herein. The actual results that the Company may achieve may differ materially from any forward-looking statements due to such risks and uncertainties.
CONTACT: Dieter Doederlein of HealthSonix, Inc., 1-877-622-2121
Web site: http://www.healthsonix.com/
http://www.hsxholdings.com/
http://www.InnovativeHS.com/