Progressive Care Inc (fka RXMD)

[holt69]

Any of you who are still questioning why they entered into the financing agreement, ask yourself this: if they're profiting $100k per quarter, why would they enter into a financing agreement to get an extra $2 mil in funding?

It's because making $100k (or even $200k) every quarter isn't necessarily enough to fund the expansion they're planning.

I think we can all agree that the company would grow (albeit slowly) by investing their current profits into expansion/acquisition efforts. Sometimes companies choose to speed up the process by obtaining additional funding, and that helps grow the business faster. That's what's going on here. They'll use the $2 mil from the financing agreement towards something with a good return. It's not like they're going to flush the money down the toilet.

With only $100k profit per quarter over the next year, they obviously won't be able to pay back the note. I won't deny that. But with increased profit because of how they'll utilize the $2 mil? It's a much better possibility.