You are partially correct about much of that, but only partially.
There is a proposed offering for $11m in funding, conditional upon uplist approval to NASDAQ. The purchase price of these shares isn't determined, and could be at a substantial premium to the current pps.
Therefore, the first step would be for RXMD to be approved for uplisting to NASDAQ with a possible ticker/symbol change. There would likely be a r/s to accomplish this; this would be a r/s along its "intended purpose" track. Most r/s in the otc are to allow more space for dilution, which is why r/s get such a bad name. The actual purpose is to increase the price to qualify for things such as market uplistings.
If RXMD is approved to the nasdaq, and if the proposed offering is then approved, there would be a second ticker assigned, which would have the new Nasdaq ticker symbol + W. This would allow for trading of the warrants, prior to conversion. Entities who participated in the offering would earn 1 share of the common stock and 1 warrant, becoming the only people with warrant shares eligible for trading.
The end result would be, RXMD (let's just use this symbol for convenience) becomes nasdaq. There would then be a second ticker created for the warrants, RXMDW. The second ticker would gain its liquidity via purchase of RXMD common shares within the prospectus terms, which would net the investors an additional share of RXMDW. RXMDW would become its own tradeable entity, and would also carry the conversion feature that these warrants could be converted to RXMD if it becomes more profitable to do so.
An example of a ticker which has done this is MDGS; their warrants trade as MDGSW.
None of this is dilutive behavior per se, because it is all conditional upon NASDAQ uplist being approved (the big story in this). There would be an r/s as part of this, but not the scary kind- only to allow minimum pricing for NASDAQ uplisting. It is almost impossible to accomplish a market uplist without a r/s; they are not to be feared in this circumstance.
You'll hear screaming about r/s, and screaming about dilution. But neither of these are a concern for the moment. The convertibles (past debt) which are dilutive won't be an issue until 2022 at the earliest. The purchase price for 1 common + 1 warrant share in the prospectus isn't known; it could be substantially higher than current pps. And finally, conversion of the warrant shares isn't even a given. There would have to be a significant increase in RXMD without a corresponding increase in the warrant value for this to occur- MDGSW trades freely as its own separate investment class and its warrants are seldom converted. It is unrealistic to expect the warrant class of shares to trade in anything except arbitrage with the base company, because its value should remain tied to those of the common stock (since they're convertible).
Basically, the company is proposing to gain capital through sale of 1common+1warrant share lots, at a likely premium price to normal common shares. The benefit to investors in these lots being that they get to become the only intial shareholders of a second class of shares, warrants, traded as RXMDW. This will only occur if NASDAQ uplist is approved. Therefore, this is essentially just a public announcement of intention to uplist to NASDAQ. Rather than taking on additional toxic debt, they want to capitalize for the big game selling shares of commons with a warrant attached as a sort of "dividend". The warrant "dividend" will be tradeable as its own entity, ideally accomplishing additional funding without corresponding dilution.
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