REDHAWK ANNOUNCES 3rd QUARTER RESULTS
LAFAYETTE, LOUISIANA -- May 20, 2019 -- InvestorsHub NewsWire -- RedHawk Holdings Corp. (OTC: IDNG) ("RedHawk" or the "Company") announced today that it reported a consolidated net loss of $98,751 for the three month period ended March 31, 2019 as compared to a consolidated net loss of $158,722 for the comparable three month period ended March 31, 2018. The net loss for the three month period ended March 31, 2019 included higher than normal operating expenses and professional fees related to the resolution of certain litigation matters.
In March 2019, RedHawk announced that it had entered into a Settlement Agreement and General Release ("Settlement Agreement") to resolve all issues arising out of certain litigation against a former officer and director of the Company. In consideration of the mutual promises, covenants and conditions contained in the Settlement Agreement, the parties to the litigation agreed that in exchange for the transfer to RedHawk of 52,377,108 of its common shares, the Company made a cash payment of $250,000 and issued two promissory notes, each in the principal amount of $200,000, one of which is due and payable on or before September 6, 2020 and the other is due and payable on or before September 5, 2021. RedHawk may repurchase both Promissory Notes for a single payment $300,000, provided such payment is made within 180 days of the execution of the Security Agreement.
Loan proceeds previously identified to retire certain variable interest loans were instead used to satisfy the $250,000 closing obligation under the Settlement Agreement.
Resolution of this lengthy litigation, however, positions the Company to now make application for a name and ticker symbol change.
During the three month period ended March 31, 2019, RedHawk Medical Products, LLC ("RedHawk Medical"), a wholly-owned subsidiary of the Company, initiated sales of its SANDD mini™ needle incineration device ("SANDD mini™" – www.needledestructiondevice.com). RedHawk Medical is nearing completion of the successful testing of its SANDD mini™ for use by school nurses in Texas. When the testing is successfully completed, the Company expects to begin supplying the SANDD mini™ to various school districts in the State of Texas beginning on July 1.
The SANDD mini™ (formerly known as The Disintegrator™) is an FDA approved and OSHA compliant portable, battery operated, needle destruction device originally designed for use at home by diabetics and in certain clinical settings. The device is intended for the incineration and environmentally friendly disposal of 27-32 gauge hypodermic needles that are 5/16 to 5/8 inch in length. It can be used with most insulin pens with disposable insulin syringes from 1/3 to 1 cubic centimeter in volume. The SANDD mini™ is designed for the safe and environmentally friendly disposal of needles following their use and is an effective alternative to hazardous waste needle disposal utilizing sharps containers. The SANDD™ mini is recognized by the California's Department of Resources and Recycling as the only FDA approved needle incineration device approved for self-injectors at home in the State of California - https://www.calrecycle.ca.gov/HomeHazWaste/sharps.
Earlier this month, RedHawk Medical announced it had entered into a sales representation agreement with Jeeds, Heath, Inc. (an affiliate of Pharmaceutical Buyers, Inc. - www.pharmaceuticalbuyersinc.com) for the sale of its SANDD mini™. The Company is currently negotiating several additional sales representation and distribution agreements that would significantly expand the current market opportunities for the SANDD mini™ to geographic areas that have, as of yet, been untapped.
RedHawk Medical is also nearing completion of the engineering testing and intellectual property re-design of its new SANDD Pro™ and expects to begin offering prototypes for final market testing by June 30, 2019.
RedHawk Medical acquired the exclusive rights to the SANDD Pro™ (the "SANDD Pro™") needle incineration technology in September 2018. With the SANDD Pro™, the Company's hypodermic needle incineration capabilities now include 14-gauge hypodermic needles and higher, up to 8 inch in length. Additionally, the acquired SANDD Pro™ technology features a portable, rechargeable, battery operated unit. This portable unit (the "SANDD Pro™ - Portable") will incinerate as many as 300 needles, ranging in gauges as thick as 21 gauge and lengths up to 8" on a single charge. The SANDD Pro™ - Portable is ideal for field use by first responders, home health care nurses, veterinarians and home use injectors. The SANDD Pro™ is FDA approved and OSHA compliant.
# # #
About RedHawk Holdings Corp.
RedHawk Holdings Corp., formerly Independence Energy Corp., is a diversified holding company which, through its subsidiaries, is engaged in sales and distribution of medical devices, sales of branded generic pharmaceutical drugs, commercial real estate investment and leasing, sales of point of entry full-body security systems, and specialized financial services. Through its medical products business unit, the Company sells WoundClot Surgical - Advanced Bleeding Control, the Sharps and Needle Destruction Device (SANDD™), and the Carotid Artery Digital Non-Contact Thermometer. Through our United Kingdom based subsidiary, we manufacture and market branded generic pharmaceuticals. Our real estate leasing revenues are generated from various commercial properties under long-term lease. Additionally, RedHawk's real estate investment unit holds limited liability company interest in a commercial restoration project in Hawaii. The Company's financial service revenue is from brokerage services earned in connection with debt placement services. RedHawk Energy holds the exclusive U.S. manufacturing and distribution rights for the Centri Controlled Entry System, a unique, closed cabinet, nominal dose transmission full-body x-ray scanner.
Cautionary Statement Regarding Forward-Looking Statements
This release may contain forward-looking statements. Forward-looking statements are all statements other than statements of historical fact. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. The words "anticipate," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely," "will," "should," "to be," "potential" and any similar expressions are intended to identify those assertions as forward-looking statements.
Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties. In evaluating forward-looking statements, you should consider the various factors which may cause actual results to differ materially from any forward-looking statements including those listed in the "Risk Factors" section of our latest 10-K report. Further, the Company may make changes to its business plans that could or will affect its results. Investors are cautioned that the Company will undertake no obligation to update any forward-looking statements.
G. Darcy Klug, Chairman, CEO and CFO