Progressive Care Begins to Take Action to Combat Naked Short Sellers Miami, FL -- April 17, 2018 -- InvestorsHub NewsWire -- Progressive Care Inc. (OTCQB: RXMD), a healthcare services and technology company, announced that it is beginning the process of combating naked short selling of the Company's stock.
The Company has begun contacting broker/dealers, clearing firms, and regulatory agencies regarding Regulation SHO violations caused by naked short selling of the Company's securities in the market. The Company is taking the matter seriously and intends to work with regulators to ensure the stability and integrity of the market.
The Company also clarified the conversion rate for Chicago Venture Partners (CVP). The facility provided by CVP allows for a bifurcated derivative liability which denotes two scenarios for conversion:
1) If during the previous 20 trading days prior to conversion date the Company's shares trade below $0.05 per share, the Company converts at a discount of the lowest bid price during that 20 day look-back period.
2) If during the previous 20 trading days prior to conversion date the Company's shares trade above $0.05 per share, the conversion price is a fixed $0.05 per share.
Conversion price is calculated based on date of conversion notice, not based on date of funds received. Conversion notices have been delivered to the Company in tranches and thus carry different conversion dates and prices. Given current trading patterns and already converted tranches, the Company estimates that 14.4 million shares in total will be issued to convert the current draw down of funds from CVP. To date, 6.4 million shares have been issued, of which 2.4 million was converted below $0.05.
"The most important thing for shareholders right now is the integrity of the marketplace for our stock," stated S. Parikh Mars, CEO. "We are taking an active role in reaching out to clearing firms and regulatory agencies to make them aware of the ongoing problem and to insist that action be taken to combat the market manipulation caused by naked short selling."
The CEO reiterated "The Company is not currently contemplating a reverse split or an additional draw down of funds from CVP." She also stressed "Investors and shareholders should take a critical look at the information being bandied about online from unverified sources. If the information did not come directly from myself, a Progressive Care platform, or a source referencing in detail the content of directly released material, then it should be viewed skeptically. My team and I take pride in our transparency and believe that the information we put out about the Company is both truthful and complete."
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