Don't want to start rumors but is HealthWarehouse.com a possibility? They had a huge shakeup starting near the end of last year.
http://www.bizjournals.com/cincinnati/news/2016/08/08/exclusive-tech-entrepreneur-developer-look-to.html
That could still be ongoing, It's one of the largest online pharmacies in the country.
I'm just guessing here so, take it for what it's worth.
here's the article if you do not want to register.
A veteran Cincinnati tech entrepreneur and a commercial real estate developer are working to make big changes at locally based Healthwarehouse.com.
Jeff Holtmeier and Rob Smyjunas, along with 10 of the biggest shareholders of Healthwarehouse.com Inc., plan to replace four of the existing directors on the company’s board with their nominees.
Jeff Holtmeier is a tech entrepreneur.
Enlarge
Jeff Holtmeier is a tech entrepreneur.
Jeff Holtmeier is founder of GENext LLC, a holding company that controls assets including companies in China, the U.S. and Pakistan. Rob Smyjunas is CEO of real estate development firm Vandercar Holdings. They formed Rx Investor Value Corp., the vehicle by which they would recapitalize the company after its directors are nominated.
Their goal is to rejuvenate the online pharmacy company based in Florence, which has seen its stock price flounder is recent years. Since its stock hit a peak of $7.50 per share in June 2012, the price has plummeted to 38 cents a share. Healthwarehouse.com shares have been priced under $1 since the end of September 2013.
Lalit Dhadphale, CEO, president and chairman of Healthwarehouse.com, said Holtmeier’s group did approach the company but the current board determined their proposal was not in the best interest of all shareholders and they lacked adequate financing to accomplish their objective. He said he could not go into detail about the proposal because Healthwarehouse.com is bound by a confidentiality agreement.
“Until they file their proxy statement with the SEC, we cannot comment further about what they plan to do or what their intentions are,” Dhadphale said.
Healthwarehouse.com is a verified Internet pharmacy practice site (VIPPS), licensed in all 50 states and selling only drugs that are FDA-approved and legal for sale in the U.S. It is the largest VIPPS-accredited online pharmacy in the U.S.
The company has not been profitable since going public, according to its annual report filed on March 25. Healthwarehouse.com incurred net losses of nearly $627,000 in 2015 and nearly $1.8 million in 2014. It posted revenue of $7 million and $6.1 million in those years, respectively. As of February 2016, Healthwarehouse.com has 23 full-time employees and 34 part-time employees.
But even with Healthwarehouse.com in its current state, Holtmeier and Smyjunas see opportunity.
“The company requires a change,” Holtmeier told me. “We’ve made every attempt to play nicely. But with the entrenchment mentality so deep, I think they can’t see beyond the end of their nose. We do see a significant opportunity with the right leadership, the right capital structure and the right strategy.”
Holtmeier and Smyjunas believe a significant amount of shareholders feel the same way, as evidenced, they say, by the 10 shareholders who've formed the voting group.
“We’re more than confident we will acquire the plurality of votes necessary to get our directors elected,” Holtmeier said.
Holtmeier said it is significant that the initial group of 10 shareholders representing more than 34 percent (without warrants) of the voting shares of the company are backing the new slate of directors. Typical activist investors start making moves when they have 5 to 7 percent.
The duo said they spent a year working with the company to come up with a way to improve performance.
“HealthWarehouse.com is an incredible opportunity, period,” Smyjunas told me.
While many industries have been disrupted by the internet, pharmacy sales haven’t seen the same level of disruption, Holtmeier said. The company’s goal has been to remove layers of cost between drug manufacturers and the end consumer.
“The goal here is to disrupt it,” Holtmeier told me.
In a January 2016 issue of Consumer Reports, the magazine compared the cost of a one-month supply of five generic drugs at major retailers, grocery stores, independent pharmacies, Walgreens, CVS, Rite Aid and HealthWarehouse.com. By far, HealthWarehouse.com had the lowest prices overall, with a total price of $83. Costco was second at $117, with Walgreens toward the bottom at $603.
The shareholder group led by RIVC intends to nominate Holtmeier, an entrepreneur in technology and communications, as a director. Currently, Holtmeier is CEO and founder of GENext LLC, a holding company that controls assets including companies in China, the U.S. and Pakistan. He is best known locally as the founder of InfiNET Inc., the Blue Ash-based telephone systems provider Holtmeier grew to 100 employees and $15 million in annual sales before selling to Teligent Inc. in 2001.
Other nominees are:
Brian Ross, principal of Mid-Market Growth Partners, a company he started in 2014 to provide consulting services and analytical tools to assist clients achieve their strategic objectives and improve financial results. Previously, Ross served as both chief operating officer and chief financial officer as part of his 13-year tenure at Cincinnati Bell Inc.
Dr. Stephen Weiss, one of the founders of Prescription Drugs Canada LLP, an online pharmacy based in Scottsdale, Ariz. and Winnipeg Manitoba to supply prescription drugs sourced in Canada at affordable prices for American residents, which was ultimately sold. He has experience in the health care and pharmaceutical industries and expertise in capital allocation and financial analysis.
Mark Douglas Scott, a licensed pharmacist and entrepreneur in both the mail order/online pharmacy industry and the call center industry. In 2002, Scott was a co-founder and president of Glenway Pharmacy, a mail order pharmacy in Winnipeg, Canada. He also co-founded Goodway Mangement and Call Center, a company that specialized in mail order pharmaceutical sales to consumers.
The current board include Dhadphale; Youssef Bennani, vice president of M&A and partnerships at OCP S.A., a global company specialized in the mining, refining, processing, manufacturing, commercialization, marketing and development of phosphate rock, phosphoric acid and phosphate-based fertilizer; Joseph Savarino, CEO and co-founder of Carpeturn.com Inc., a company that provides flooring materials and services to the multi-family housing industry, and Ned Siegel, president of the Siegel Group Inc., a multi-disciplined international business management advisory firm specializing in infrastructure, real estate, ports, energy, utilities, technology and financial services.
According to Healthwarehouse.com's public filings, while the company is not profitable, it increased director pay twice in 2015. In February 2015, the compensation committee approved a new compensation plan for non-management directors that includes monthly cash compensation of $1,000 per director and quarterly stock option grants with a grant date value of $3,000 per director. Then, in July 2015, the compensation committee approved a revision to the plan, changing the monthly cash compensation to $3,000 per director and the quarterly stock option grants under the stock option plans with a grant date value of $9,000 per director.
Holtmeier claims the board is disenfranchising the shareholders.
News of RIVC's plan to change out the board comes after HealthWarehouse.com said it will eliminate nearly $700,000 in debt by issuing 2.2 million shares of common stock to Dellave Holdings Inc., which is controlled by Tim Reilly, according to Healthwarehouse.com. Reilly is the managing member of Melrose Capital Advisors, which is the senior lender to HealthWarehouse.com.
Last week, Dhadphale told the Business Courier the company is “enjoying unprecedented high-margin, record-revenue growth in its core consumer business.”
The company is scheduled to report its second-quarter earnings this week.
The shareholder group led by RIVC filed its Schedule 13D with the Securities and Exchange Commission July 23. A 13D filing is often a precursor to a change of control event for a public company.
Healthwarehouse.com’s annual meeting is scheduled for Sept. 2 at 5 p.m. at its executive offices, located at 7107 Industrial Road in Florence. At that meeting, shareholders will vote to keep the current board or install the slate proposed by Holtmeier and Smyjunas.
According to Healthwarehouse.com’s proxy statement, the company believes “the board’s director nominees have the independence, experience, knowledge and commitment to deliver value for the company and its stockholders.”
Also at the annual meeting, the company is asking holders of Series B preferred stock to elect one additional director, Joe Heimbrock. He was appointed a director in April.
Heimbrock is managing director of MVI Partners. In April, MVI Partners acquired about 500,000 shares, or 95.7 percent of the outstanding series B preferred stock in HealthWarehouse.com.
MVI Partners includes two daughters of Reilly, a former partner of MVI who is the managing member of Melrose Capital Advisors, which previously loaned HealthWarehouse $1 million. The children have a combined one-third interest in MVI Partners.
News 
Market Data 
Discover 
AI
