MIAMI, April 17, 2018 (GLOBE NEWSWIRE) — Progressive Care Inc. (OTCQB:RXMD), a healthcare services and technology company, announced that it is beginning the process of combatting 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:
- 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.
- 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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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.