Aug 24 2010
Connectyx Technologies Holdings Group, Inc. (Pink Sheets:CTYXD) ("Connectyx" or the "Company"), as a result of recommendations from Management and the Board of Directors, completed a 1- for- 50 reverse stock split of the Company's common stock ("Reverse Split") today. In accordance with FINRA rules, effective immediately, the Company's stock symbol: CTYX will have a "D" appended to the end of it, which will remain for 20 business days after which it will revert back to the original symbol. As a result, the Company's stock will trade under the symbol CTYXD until September 20, 2010, and beginning September 21, 2010, will commence trading under the original symbol of CTYX once again.
In accordance with the Florida Business Corporation Act, the Company received the written consent from the shareholders holding a majority of the issued and outstanding shares of voting capital stock of the Company approving an amendment to the Company's 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 with and effective date of August 23, 2010. Any fractional shares resulting from the Reverse Split have been rounded up to the nearest whole share of common stock.
As stated in the Company's "Letter to Shareholders" dated August 16th, Ronn Schuman, President and CEO, stated, "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."
Connectyx's management team and its board of directors will continue to make it one of its top priorities to actively seek 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 the Company's position in this growing market.
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. Ronn Schuman, Connectyx President & CEO, stated, "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 the Company's behalf. Along a similar vein, management has aggressively begun to market a licensing model, which is a membership to the portal without a USB device. This has allowed MedFlash® 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 the Company flexibility to offer a revenue share to their strategic channel partners, thereby offering a greater incentive for them to market MedFlash®.