Progressive Care Inc (RXMD)

[bigjuice]

Except from the conferences: By the way, this is from the sticky...I could post the whole thing if you do not believe me.

Question:
Ok, best for last. On the M&A discussion during the presentation, we knew that you were in conversations, but we didn’t know that there are now three identified targets. You said you are looking for $2M from private investors. That seems like an unusually small amount. What’s the $2M for?

Shital
Yes, it seems like a random number, but the reason why is that the businesses we are talking to aren’t huge players. What they have is the licenses. We are looking to do a complete buy-out, which would transfer the licenses to us.

Armen
These are operating businesses. They’re small, but because we know these businesses and how to operate them, we can capitalize on our network immediately with these kinds of businesses. This is why we’re going after them.

It’s the licenses, the contracts they already have established with insurance carriers, and the ability to bill for Medicare.

Shital
For us to open up a shop and build it out organically would take too much time. Our network ties us in with more doctors and insurance providers than some of these small businesses, so we just need their infrastructure. After an acquisition, it’s plug and play. No add’l overhead, no premium for the database, etc.

Armen
Also, in some states there is a moratorium on new licenses, and this is a way to get around that.

We don’t want to take the risk of taking over a business where existing relationships might not want to work with us. We already have the relationships and sources of business; we just need the license and provider contracts.

Except from PR:

Jun 17, 2016 (Marketwired via COMTEX) -- MIAMI, FL--(Marketwired - June 17, 2016) - Progressive Care Inc. (otc pink:RXMD), through its subsidiary Pharmco LLC, a South Florida health services organization and provider of prescription pharmaceuticals specializing in health practice risk management, compounded medications, the sale of anti-retroviral medications and related medication therapy management, and the supply of prescription medications to long term care facilities, issues follow up to shareholders on the status of potential acquisitions.

Dear Valued Shareholders,

On June 15, 2016 the Progressive Care issued a press release updating the public on the sales for May 2016 and status of proposed acquisition targets in the home health care space.

First, we would like to clarify that the decision to suspend our pursuit of home health care agencies as potential acquisition targets is in no way connected to the core business of PharmCo, LLC or its expansion into other state markets. PharmCo is continuing to file applications in states across the country to extend the reach of our custom compound business line.

Progressive Care was in the LOI/due diligence stage with a potential acquisition target in the home health care industry. Upon receiving the update on the new regulations and pre-claim authorization procedures for the industry, the Company decided to terminate the LOI until the management team could ascertain the ramifications of the new protocols on the home health care industry. As was mentioned in the press release issued on June 15th, the Company believes that the new CMS procedures will decrease the number of approved claims for home health care and increase the cost of reviewing, processing, and adjudicating such claims.

We are fortunate that we received the new information from CMS at this stage of the acquisition process. It allowed us to terminate the LOI without any penalties or break-up fees in addition to preventing us from closing on an ultimately costly acquisition. The early stage termination also had the added benefit of allowing the company to continue its conversations with the sellers of these targets about potential acquisitions of companies in other health care arenas.

We want to assure the shareholders that the goals of the company remain unchanged. The Company still plans to identify and evaluate potential acquisition targets both within and outside the pharmacy industry. The Company continues to be on track to reach its annual sales and earnings goals as well as its expansion objectives.

Sincerely,

S. Parikh Mars

CEO

Progressive Care Inc.

This is clearly a lie SOMEWHERE. It doesn't matter what they lied about, just the fact that THEY DID INDEED LIE.

It would make sense to fabricate some acquisition talk at a conference, then two weeks later try to hide the fact that they are out of negotiations due to some other reason that doesn't jive with the original reason they were looking to acquire.

ARMEN is a fraud people, and now he has been caught.

The robot was purchased in January. 6 months and they are still using that as a reason to invest. Who knows if the numbers are fabricated too? It would be very easy to fabricate numbers knowing that they don't report to SEC. It would be easy knowing they do not have a real audit performed. I AM AN AUDITOR, IT DOES NOT COST THAT MUCH TO HAVE AN AUDIT COMPLETED. They say they are saving hundreds of thousands...that is rubbish. An audit performed for a one branch pharmacy would cost less than 40K, EASILY.

This one lie will wind up ballooning into something much bigger and I am sorry that some people will be getting caught up in it.