Progressive Care Inc (RXMD)

[stockforce]

Question #2 from Q3 CC:
Question: Will the company consider raising capital through a merger with a SPAC as an alternative way to a traditional IPO for the uplist?
Reponse: Current market conditions are not favorable for raising capital either through an IPO or a merger with a SPAC.

https://m.marketscreener.com/quote/stock/PROGRESSIVE-CARE-INC-120793189/news/Transcript-Progressive-Care-Inc-Special-Call-42323652/

I asked them this quesiton and I totally missed the IPO part when they ansewed it during the CC. What does this mean?

This means to me that they will most likely uplist to Nasdaq without an IPO, which is called a Direct Listing.

What is a direct listing at Nasdaq?
A direct listing allows companies to list on Nasdaq without concurrently raising capital. Typically, a company will list securities on a national securities exchange to provide restricted liquidity to existing shareholders and to raise capital via an Initial Public Offering (IPO). A direct listing, however, provides unrestricted liquidity to existing shareholders and the company does not concurrently issue securities to public investors to raise capital.

What is the difference between an IPO and direct listing?
When a company decides to go public, there are typically existing shareholders including founders, employees, and various early stage investors. Both an IPO and a direct listing enable these investors to cash out. However, in an IPO, there is a lock-up period—typically between 90 to 180 days—in which shareholders are restricted from selling outside of the Initial Public Offering. In a direct listing, there are no lock-up restrictions.

Jack Cassel, VP of New Listings and Capital Markets at Nasdaq, explains how a direct listing is one alternative path to the public markets. Read the article here.

https://www.nasdaq.com/solutions/direct-listings#:~:text=What%20is%20a%20direct%20listing,Initial%20Public%20Offering%20(IPO).