$RXMD - HUGE RESTRUCTURING NEWS OUT! $RXMD - HUGE RESTRUCTURING NEWS - Progressive Care Enters into an Agreement with NextPlat for Significant Strategic Investment and Debt Restructuring
BY GlobeNewswire
— 1:31 PM ET 08/31/2022
MIAMI, FL, Aug. 31, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Progressive Care Inc. (RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology company, is excited to announce that it has entered into an agreement for a recapitalization of its current debt and a strategic investment by NextPlat Corp. (“NextPlat”).
Under the agreement, Progressive Care (RXMD) will receive an aggregate of $6 million from NextPlat in exchange for the issuance to NextPlat of 3,000 units of Series B Preferred Stock as well as warrants to purchase up to 3,000 shares of Series B Preferred Stock at an exercise price of $2,000 per share. In addition, NextPlat’s Executive Chairman and CEO, Charles M. Fernandez, board member, Rodney Barreto, and certain other investors will purchase approximately $2.8 million of outstanding convertible debt in Progressive Care (RXMD) at an agreed fixed conversion price of $0.02 per share. Progressive Care (RXMD) and NextPlat agreed to reduce the interest rate on the purchased debt from 10% to 5% per annum and extend the maturity date to August 30, 2027.
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