RXMD - Progressive Care Signs Letter of Intent to Purchase Florida Based Pharmacy with $18 million in Annual Revenue
BY GlobeNewswire
— 8:00 AM ET 11/28/2018
MIAMI, Nov. 28, 2018 (GLOBE NEWSWIRE) -- Progressive Care Inc. ( RXMD
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) , a personalized healthcare services and technology company, today announced that it has entered into a letter of intent to purchase a Florida based pharmacy with 2 operating locations.
On November 27, 2018, Progressive Care ( RXMD
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) executed a letter of intent to purchase a Florida based pharmacy with locations in Davie and Orlando, Florida. The target pharmacy had just under $16 million in revenue in 2017 and is projected to have approximately $18 million for 2018. The agreement calls for a stratified payment structure for the total purchase price of $3,000,000. $2.3 million in cash spread over 2 years and $700,000 in stock valued at market price at closing or $0.07, whichever is lower. The signing is expected to take place no later than January 15, 2019 after the completion of a 45-day due diligence period.
“We have devoted our efforts to grow the company and expand its geographical coverage,” said S. Parikh Mars, Chief Executive Officer of Progressive Care Inc. ( RXMD
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) “This LOI is a significant step towards our development and presence in the industry. We are excited to add another pharmacy with its exceptional team to our family and platform.”
The vast majority of the target pharmacy’s patient base is in Orlando, and they provide similar services to PharmCo such as home delivery, MTM, medication synchronization, full range inventory, etc. The target pharmacy is owned and managed by an experienced team of pharmacists and operational staff that provide expertise in healthcare management and logistics.
Upon signing of definitive agreements, the Company will initiate the Change of Ownership process with relevant regulatory agencies and pharmacy benefit managers. Upon completion of this process, the target pharmacy will be the wholly owned subsidiary of Progressive Care ( RXMD
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).
