MIAMI, April 05, 2018 (GLOBE NEWSWIRE) — Progressive Care Inc. (OTCQB:RXMD), a healthcare services and technology company, releases open letter to shareholders written by the Company’s CEO, S. Parikh Mars.
I am aware of misinformation currently circulating about the Company. I am writing this letter today, to speak personally and candidly about the topics that I feel are causing a great deal of consternation among you and the investing public. While I cannot speak to every question in this letter, I hope that I can convey a level of truthfulness that will be meaningful.
First, last week our website was hacked. However, no patient or non-public information is available through our website, so no breach of personal data occurred. When I was made aware of the issue, I made sure the Company’s IT personnel devoted all their efforts to securing our website. I am aware that Google search results continue show that the website may be hacked. Search results normally show that errors are present for a period of time following the presence of a malfunction, even though the site has been fully restored.
Secondly, it is speculated that insiders of the company are selling shares or that our funding partner Chicago Venture Partners (CVP) is irresponsibly selling shares that they have received. Nothing could be further from the truth. I know with 100% certainty that no one within the company has sold a single share of stock. All shares owned by employees and management are still in certificate form with their restrictive legends still in place.
CVP is bound by a leak-out agreement, which they have honored since they began converting their facility last year. Of the new funds drawn down, $50,000 was converted into just over 2.4 million shares. These shares were sold over a period of several days and no further conversions have been executed as of today. It is not in their best interest to short the stock because it jeopardizes the profitability of the facility.
I would like to now provide clarity on the Company’s share structure and future plans. There is no imminent reverse split. Neither I nor the Company’s Board of Directors can initiate a reverse split of the Company’s common shares. This is a decision that must be discussed and voted on by the shareholders. There may come a time when this decision will be necessary, however, it is not currently being contemplated nor is it in the management’s sole authority to execute.
Misconceptions about these and variety of other subjects should in no way deteriorate the confidence you have in this Company. The fundamentals of this Company remain strong and we as Company remain committed to transparency.
I believe that a portion of volatility and instability of the Company’s stock price is also the result of short selling in the market. While the Company cannot control this, we can encourage all shareholders to indicate to their brokers or trading platforms that they do not allow their securities to be borrowed for short selling. This can be done through modification of your account documentation or updates to your trading profiles online.
Lastly, I would like to discuss the recent restricted share issuance to myself and the employees of this Company. This is a subject I feel so strongly about, that my passion cannot be adequately conveyed in writing. This share issuance, at this time, was equal parts long overdue reward for past performance as well as long term incentive for future performance. The people that work here have sacrificed and devoted their lives to the mission of this Company, especially those that have been here before the Company was publicly traded. Any person, shareholder, or investor who believes that this issuance of shares was a giveaway, does not understand the amount of work that goes into developing a Company like this with limited resources we have had.
These shares were approved when the Company traded just above $0.01 per share. The shares were issued with vesting periods of 1 year and cannot be sold during that time pursuant to their restrictive legends. We had no anticipation of what the future trading pattern would be. What we knew is that the Company had grown and that our plans included more growth, which required even more sacrifice from our management and employees. This Company has been in business for over 10 years. Now was the time to prepare for the future and to honor the work that had been done.
I always strive to make our shareholders proud. I believe in the mission of this Company and the vision we have put forth together to improve the healthcare delivery process. I will continue to devote myself to every effort that is beneficial to all stakeholders, while also remembering that my leadership is not limited to the numbers on paper but is also measured by the wellbeing of people who give so much for so little.
Today, all I can do is reinforce the confidence you have in me, this team, and this Company. This is the same Company it was 3 months ago: profitable, growing, determined. We want our shareholders to put their money behind us because they believe in us and want to be part of this unique story that is just beginning.
I am sincerely grateful to every shareholder who continues to back this Company. I am humbled by your faith in me and in what this Company stands for. I hope you take comfort in my continued commitment to you and the longevity and prosperity of this Company.
S. P. Mars
Progressive Care Inc.
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About Progressive Care
Progressive Care Inc. (OTCQB:RXMD), through its PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, provider of tele-pharmacy services, the sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long term care facilities, and health practice risk management.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target,” “intend” and “expect” and similar expressions, as they relate to Progressive Care Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.