Progressive Care Inc. Completes Acquisition of Family Physicians Rx
June 04, 2019 08:00 ET | Source: Progressive Care, Inc.
MIAMI, June 04, 2019 (GLOBE NEWSWIRE) -- Progressive Care Inc. (OTCQB: RXMD), a personalized healthcare services and technology company, announced today that it has closed on the acquisition of Family Physicians RX, Inc., dba Five Star RX and Florida corporation (FSRX) on June 1, 2019.
On June 1, 2019, FSRX became the wholly owned subsidiary of Progressive Care Inc. The Company conducted auditor observed inventory counts on June 2nd and June 3rd for the location in Davie and Orlando, FL respectively. The next phase of the process includes formal change of ownership notifications to all major insurance payors, vendors, and certain agencies that require post-closing documentation. Upon full update of all systems with new ownership information, the Company will release the second tranche of funds from escrow.
The consummation of the acquisition allows for the Company to begin consolidating financial results from FSRX occurring after June 1st into disclosure reports and news releases. In the month prior to closing, FSRX filled approximately 18,000 prescriptions servicing 7,500 patients. With the addition of the Davie, FL and Orlando locations, Progressive Care now boasts 4 physical pharmacy locations with 5 star performance ratings and nearly 125 employees from which to launch further expansion and sales growth.
On June 3, 2019 $1,000,000 of the $2.3 million held in escrow was released to the selling shareholders of FSRX. The Company will issue 10,000,000 shares of common stock pursuant to the terms of the purchase agreement, valued at $0.07 per share for a total purchase price of $3 million.
“This is our biggest accomplishment to date,” said S. Parikh Mars, CEO of Progressive Care. “Now that FSRX is part of the Progressive Care family of pharmacies, we can focus on getting to next level as an organization. I am honored to have this group of talented individuals join our team and to take our collective strength to bring about change and results in this industry.”