WTKN - WellTek/MedX Group (Completes Reorganization)
 

ORLANDO, Fla., Nov 11, 2009 /PRNewswire-FirstCall via COMTEX/ -- WellTek/MedX Group, health, fitness and wellness companies, today announced that it has completed a major corporate reorganization to facilitate becoming an SEC reporting company.

On November 11, 2009, MedX Systems, Inc. merged into a wholly owned subsidiary of an SEC reporting public company, previously named Pharmacity Corporation, and subsequently changed its name to WellTek Incorporated. As a result of the merger, there are 85,783,828 shares of common stock outstanding, including approximately 70,000,000 shares issued in the merger. In addition, there are outstanding options and warrants exercisable into an aggregate of 8,660,411 shares of WellTek Incorporated.

"As a consequence of this transaction, we now have a viable, trading market for our common stock. Moreover, management is now free to focus exclusively on executing our growth strategies and building long term value for our trusted shareholders," stated Randy Lubinsky, Chairman and CEO.

For more detailed information, please refer to the Form 8-K to be filed with the U.S. Securities and Exchange Commission. To view, please visit .

About WellTek Incorporated

WellTek is a global health, fitness and wellness company that provides solutions to help address some of the world's most pressing and costly health challenges--obesity and chronic neck and back pain. The Company's subsidiary, MedX Limited, manufactures, markets and distributes the most advanced medical exercise equipment to the medical and fitness markets. Through its wholly owned subsidiary Pure HealthyBack, Inc., WellTek is redefining healthcare delivery by providing health plans, self-insured employer groups, and consumers with a viable non-surgical, lower cost treatment for patients who are seeking lasting relief from chronic neck and back pain. The Company also owns and operates lime Fitness, Inc., a high-end fitness and exercise studio specializing in lifestyle fitness coaching designed to facilitate life, image and mind enrichment. For more information on the Company, please visit .

WellTek Positioned to Capitalize on Trends in Health
 

WellTek Positioned to Capitalize on Trends in Health
Three Subsidiary Companies Offer Combined Solution to Growing Health Concerns

ORLANDO, Fla., Nov. 24 /PRNewswire-FirstCall/ -- Two thirds of adults are overweight and one third of those are obese. Experts estimate that 80 percent of the population will experience a back problem at some point in their lives. Back pain is one of the most common reasons for missed work and the second most common reason for visits to the doctor's office. Combine these sobering statistics with ever-increasing healthcare costs and the growing health concerns among the global population, and it's easy to see why the economic outlook for the health and fitness industry is resoundingly positive.

WellTek Incorporated (OTC:WTKN) (BULLETIN BOARD: WTKN) is positioned with three subsidiaries - MedX Ltd., Pure HealthyBack and lime Fitness - to provide lasting solutions for chronic neck and back pain, combat obesity, and empower people to take control of their health and wellness.

research report
 

Grass Roots research report On WellTek is out.

Cohen Short Term Price Target Index $1.40
Cohen Intermediate Term Price Target Index $1.74
Cohen Long Term Price Target Index $2.23

INVESTMENT THESIS & RECOMMENDATION

WellTek Inc., a manufacturer of medical and fitness equipment, is diversifying into the lucrative health and wellness service
markets. The Company intends to leverage its globally recognized MedX Brand to access related high growth niche markets within the health and wellness industry. These services will not only augment equipment sales, but will also create new revenue streams with significant growth potential. WellTek seeks to tap the high demand medical back and neck pain market segment with its value-based treatment centers under its Pure HealthyBack division. The Company is also targeting the healthconscious elite class with its fitness studios under its lime Fitness division. WellTek envisions an extended global presence through both, organic growth and strategic joint ventures.

The aging baby boomer population and rising costs of healthcare and obesity rates has led to investments in innovative health, fitness and wellness products and services. The Wellness Industry is expected to be a $1.0 trillion market by 2010, according to economist, Paul Zane Pilzer. And, according to IHRSA President & CEO Joe Moore, healthcare spending is expected to
double by 2016 to $4.1 trillion. The Company is ready to capitalize on the increasing demand for innovative health and wellness services given its highly accomplished team of professionals and brand recognition. Providing the Company raises approximately $3 million of capital, we forecast significant top line growth as WellTek enters the service segment with multiple complementary business lines. The business model features strong organic growth potential world-wide through tactical replication and scaling. Revenues are projected to grow at a CAGR of 124% through 2009-2013.

Our short term target price of $1.40 reflects forward P/E multiple of 13.3x our estimated FY 2011 EPS. We project an intermediate price target of $1.74 and our long term price target is $2.23 per share. WTKN is potentially a lucrative investment opportunity for risk-averse investors.