Progressive Care Inc (fka RXMD)

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Settled!!! YOY [and DOD increasing revenues :), decade over decade]!!! potential 1$ to 10$ pps IMO mid term


Progressive Care Successfully Negotiates Settlement Agreement
JANUARY 24, 2022
MIAMI, FL – January 24, 2022 – Progressive Care Inc. (OTCQB:RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology company, today announced that on January 20, 2022 (the “Effective Date”), the Company reached an agreement to settle the Company’s demand (the “Company’s Demand”) on December 14, 2021 against two investors, Chicago Venture Partners, L.P. (“CVP”) and Iliad Research and Trading, L.P. (“Iliad,” and together with CVP, the “Investors”), and the response of the Investors to the Company’s Demand received on January 7, 2022 (the “Investors Demand”) as reflected in a complaint they filed against the Company (the “Settlement Agreement”). The Settlement Agreement contains customary terms and conditions and provides for the following in exchange for a mutual release of the Company and the Investors from all alleged claims.

Under the Settlement Agreement, CVP agreed to pay the Company $175,000 (“CVP Payment”) via wire transfer within two (2) business days of the Effective Date. Upon receipt of the CVP Payment, the Securities Purchase Agreement between the Company and CVP, and all other documents entered into in connection therewith, will be deemed to be terminated and of no further force or effect.

Iliad agreed not to sell any shares of the Company’s common stock or submit any redemption notices beginning on the Effective Date and ending on the maturity date (the “Standstill Period”) of the Secured Convertible Promissory Note between the Company and Iliad (“Iliad Note”), so long as no default occurs under the Iliad Note. The Company also has the right to request, on a weekly basis, a document sufficient to show the number of shares of the Company’s common stock held by Iliad. A failure by Iliad to produce such a document entitles the Company to liquidated damages ranging from the amount of $500 to $1000 per trading day. Moreover, in the event that Iliad breaches its obligations during the Standstill Period, the Company will be entitled to liquidated damages in the amount of 300% of the value of the shares sold in violation of the Standstill Period.

The Company has the right to prepay the Iliad Note for an amount in cash equal to one hundred and five percent (105%) of the portion of the outstanding balance that the Company elects to prepay (“Prepayment Amount”), a reduction of five percent (5%) as compared to the terms of the original Iliad Note.

Iliad and the Company agreed to extend the maturity date of the Iliad Note to April 15, 2022 with all terms of the Iliad Note remaining substantially the same except with respect to the material modifications described in this press release. The Company also has the right to extend the maturity date for an additional month to May 15, 2022, however, if it elects to do so, the outstanding balance of the Iliad Note will increase by two percent (2%). The balance of the Iliad Note decreased in the amount of $180,000 effective as of May 31, 2021. In the event the Iliad Note is not repaid by February 16, 2022, the outstanding balance of the Iliad Note will increase in the amount of $100,000.