Personalized healthcare services and technology company, Progressive Care Inc (OTCMKTS:RXMD) on August 31, 2022, announced entering into an agreement for recapitalization of the current debt as well as a strategic investment by NextPlat Corp.
Trading Data
On Wednesday, RXMD stock up 42.91% to $0.0317 with more than 12.95 million shares, compared to volume of 857.63K shares. The stock moved within a range of $0.0230 – 0.0425 after opening trade at $0.0238.
Progressive Care Enters into an Agreement with NextPlat for Significant Strategic Investment and Debt Restructuring
The agreement will see the company getting about $6 million from NextPlat in exchange for the issuance to NextPlat of 3,000 units of Series B Preferred Stock. Furthermore, there will be warrants for the purchase of 3,000 shares of Series B Preferred Stock at an exercise price of $2,000 per share.
NextPlat’s Executive Chairman and CEO, Charles M. Fernandez, board member, Rodney Barreto as well as other investors will buy $2.8 million of outstanding convertible debt in Progressive Care. The two entities have confirmed reducing interest rates on the debt from 10% to 5% per annum and extending the maturity date to August 30, 2027.
Charles M. Fernandez said that the company has built a vibrant and quickly growing technology and healthcare company serving thousands of customers. Fernandez is looking at a tremendous value in the company’s capabilities. The CEO opines that the firm can leverage expertise, industry know-how as well as global e-commerce platforms for accelerating continued growth domestically and internationally. As per the CEO, Progressive is committed to utilizing digital technologies for capitalizing on the digital transformation of the firm as well as the entire healthcare industry.
Key Quote
Charles M. Fernandez said, ”Progressive Care has built a vibrant and rapidly growing healthcare services and technology company currently serving tens of thousands of customers who rely on its PharmcoRx platform and services every day. As a technology and healthcare entrepreneur, I see tremendous value in Progressive Care’s capabilities which is why I am personally investing alongside NextPlat. I believe we can leverage our expertise, industry know-how, and global e-commerce platforms to accelerate their continued growth domestically as well as internationally. As long-term investors, we are committed to harnessing the power of digital technologies including Web3, to capitalize on the ongoing digital transformation of Progressive Care and the entire healthcare industry.”
Technical Data
RXMD stock is trading above the 20-Day and 50-Day Moving averages of $0.0240 and $0.0268 respectively. However, the stock is trading below the 200-Day moving average of $0.0322. The company has a total market capitalization of $17.40 million.
