Progressive Care Inc (fka RXMD)

[Jimmy Quick]

Funding Agreement Balance for Expansion and New Programs- FYI

The current convertible debt funding agreement balance is $3,515,000. This is comprised of two tranche’s that have been drawn which consist of the following:

1. On January 2, 2019, the Company entered into a securities purchase agreement with Chicago Venture in the amount of $2,710,000 which included $200,000 Original Interest Discount (“OID”) and $10,000 in debt issuance costs for the transaction. The notes are convertible into common shares of the Company. On January 2, 2019, the Company drew down the first tranche against the Chicago Venture note in the amount of $1,090,000, which included $80,000 of the OID and the $10,000 debt issuance costs.

Result and Funding Left: This has now provided them with just over a million of cash on hand at the end of the first quarter at $1,019,649 that is to be used for expansion initiatives and their other programs (DischargeRx, tele-pharmacy, CBD, etc.) There is no reason for additional tranche’s, or the remaining $1.5 million in cash at this time.

2. On March 6, 2019, the Company entered into a securities purchase agreement with Iliad Research and Trading, L.P. in the amount of $3,310,000, which included $300,000 Original Interest Discount (“OID”) and $10,000 in debt issuance costs for the transaction. The notes are convertible into common shares of the Company. On March 11, 2019, the Company drew down the initial tranche against the Iliad Research and Trading note in the amount of $2,300,000, which included $115,000 of the OID with the remainder of the OID to be applied at closing on the acquisition of Family Physicians.

Result and Funding Left: The additional $700,000 on funding agreement was to cover full purchase price of $3 million in case something might have changed in terms of the $700K in exchange for 10 million shares. The seller did take $700K in shares for a total of 10 million shares at a conversion price of $.07 upon close of deal.

As I have stated previously, there is no certain guarantee that states any of the remaining balances will be withdrawn. Is it likely some will? Possibly, but not guaranteed. The first note some 2 1/2 years ago was for $2,000,000 and they only borrowed $830,000 and it is completely paid-off and superseded by current funding agreements.

****Let’s not forget, using this approach leaves the door open to complete more pharmacy location acquisitions this year with a total of $2.2 million ($1.5 million plus $700K) in cash funding still available to them yet****

IMPROVED FUNDING AGREEMENTS FOR ACQUISITIONS and NEW HEADQUARTERS