$RXMD - WE ARE BACK!!!! $RXMD - HUGE RESTRUCTURING NEWS - Progressive Care Enters into an Agreement with NextPlat for Significant Strategic Investment and Debt Restructuring
BY GlobeNewswire
— 1:31 PM ET 08/31/2022
MIAMI, FL, Aug. 31, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Progressive Care Inc. (RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology company, is excited to announce that it has entered into an agreement for a recapitalization of its current debt and a strategic investment by NextPlat Corp. (“NextPlat”).
Under the agreement, Progressive Care (RXMD) will receive an aggregate of $6 million from NextPlat in exchange for the issuance to NextPlat of 3,000 units of Series B Preferred Stock as well as warrants to purchase up to 3,000 shares of Series B Preferred Stock at an exercise price of $2,000 per share. In addition, NextPlat’s Executive Chairman and CEO, Charles M. Fernandez, board member, Rodney Barreto, and certain other investors will purchase approximately $2.8 million of outstanding convertible debt in Progressive Care (RXMD) at an agreed fixed conversion price of $0.02 per share. Progressive Care (RXMD) and NextPlat agreed to reduce the interest rate on the purchased debt from 10% to 5% per annum and extend the maturity date to August 30, 2027.
NextPlat’s management team and select members of its Board of Directors will provide Progressive Care (RXMD) with their market-proven experience in healthcare and digital technology including the development of new healthcare and lifestyle products to be sold via NextPlat’s global e-commerce marketplaces. As part of this transaction, Mr. Fernandez will be appointed as Chairman of Progressive Care’s Board of Directors (the “Board”) replacing Alan Jay Weisberg who will step down from this position to assume the new role of Vice Chairman, remaining on the Board, while also continuing to serve as Progressive Care’s CEO. Mr. Barreto will also be joining the Board as Vice Chairman. Dawson James Securities Inc. (“Dawson”) served as the placement agent for this transaction. Progressive Care (RXMD) intends to utilize a portion of the growth capital to further fund the deployment of its digital platforms and the development and sale of new health, fitness, and beauty products.
Over the past 30 years, Mr. Fernandez has successfully identified profitable start-up and dislocation opportunities, and built significant shareholder value, executing both private and public exits. Mr. Fernandez’s expertise in technology and healthcare includes co-founding Lakeview Health Systems (acquired by a private equity firm for approximately $70 million) and Continucare Corporation (acquired by Metropolitan Health Networks, Inc. for approximately $400 million) where he served as chairman, president and CEO. He also served as an investor, director, and Chairman of the Audit Committee of IVAX Corporation for nearly a decade prior to its purchase by Teva Pharmaceuticals for $8.7 billion.
Charles M. Fernandez said, ”Progressive Care has built a vibrant and rapidly growing healthcare services and technology company currently serving tens of thousands of customers who rely on its PharmcoRx platform and services every day. As a technology and healthcare entrepreneur, I see tremendous value in Progressive Care’s capabilities which is why I am personally investing alongside NextPlat. I believe we can leverage our expertise, industry know-how, and global e-commerce platforms to accelerate their continued growth domestically as well as internationally. As long-term investors, we are committed to harnessing the power of digital technologies including Web3, to capitalize on the ongoing digital transformation of Progressive Care (RXMD) and the entire healthcare industry.”
Alan Jay Weisberg commented, “Progressive Care has pursued a vision of being able to transform the healthcare industry by creating data-driven tools and technology. Charlie and the team at NextPlat have extensive knowledge and experience in utilizing digital technology and we believe will help Progressive Care (RXMD) build significant value for all stakeholders including patients, payors, practitioners, and investors. We are excited to have this team of industry leaders as our new long-term investors and partners, and look forward to working together to advance our vision for modern healthcare.”
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