Progressive Care Inc (fka RXMD)

[bigjuice]

No.

Do your own research. If you are a smart investor (not you, but everyone in general), I feel like you would want to be aware of possible lies coming from a company that has never seemed to lie before.

So during the conferences, look at two of the most popular longs' write up, Shital and Armen stated that they had 3 acquisition targets, 2 in final stages.

3 total acquisition targets
2 of these in final term negotiations (price agreed on)

Straight from a current long's write up: (Excerpt)

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.

When I called Armen, I explicitly asked him multiple times if the acquisitions that they spoke about at the conference were the same ones that they decided to pass on. He emphatically said yes. Please call and ask him the same.

They didn't have these new home health care acquisition targets in their back pocket as you suggest. The acquisitions that they passed on were the three that were spoke about at the conferences.

Now go back and read the shareholder PR that they rushed out due to the PPS dropping last week.

If you would rather me paste it, I will.

Here you go. Here is the PR that they rushed out late last week due to the PPS dropping: (Excerpt)

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.

Now how did these three acquisition targets that were stated in a 1-on-1 conversation as revolving around a small shop with all state licenses suddenly become three home health care companies?


Here is another excerpt from the 1-on-1's that was from our second long who attended. They gave him basically the same answer. Excerpt from second set of questions:

Q: You mentioned we are seeking $2M in private funding for 1 or 2 acquisitions. What do you expect to get for $2M?
A: We are looking at smaller companies with owners looking to sell because they are retiring, or had enough. One company in particular has licenses in all 50 states. We are interested in those licenses as well as the relationships and contracts they have. That is what we are buying.

So Armen told both of our longs that the acquisitions did in fact have very much to do with the licenses for all states. That is consistent. What is not consistent is the lack of acknowledgement of this during the latest PR to shareholders and the lack of acknowledgement to longs who have called.

Everyone on here keeps saying that they never said anything about the licenses. Well, two of our vocal and trustworthy longs were told, to their face, that the acquisition targets have very much to do with licenses (they reported as such).

Where was the mention of these being home health care facilities during the conference?

Many people would not catch this inaccuracy. If I was wanting to pump up a stock, I would claim to be involved in acquisitions, especially acquisitions that provide something of value to our annual goals. If I lied about these possible acquisitions during conferences, I would try to sneak a couple to a few weeks later and say that they are out of the picture, BUT I would try to play it off as no big deal.

How did they play it off as no big deal?
1) They piggybacked the loss of acquisition targets to the tail end of a PR stating something good. (Monthly revenues seems like a good bet)
2) They twisted the wording around concerning these acquisitions to confuse and direct the readers to something else. How did they do this? They changed the wording to revolve around home health care, AND they directed the readers to looming legislature that would give them reason to back out.

Can anyone here argue this assessment in a professional way while showing proof?