Open Letter to Shareholders Summarizes Recent Milestones
MIAMI, FL -- February 15, 2017 -- InvestorsHub NewsWire --
Progressive Care, Inc. (OTC PINK: RXMD) ("Progressive" or the
"Company"), a South Florida health services organization and
provider of prescription pharmaceuticals specializing in health
practice risk management, the sale of anti-retroviral medications
and related medication therapy management, the sale and rental of
durable medical equipment and the supply of prescription
medications to long term care facilities, releases the following
letter to Shareholders from the Company's Chief Executive Officer,
S. Parikh Mars:
Dear Progressive Care Shareholders,
2017 has taken off at a blistering pace. The New Year has
brought exciting opportunities and a renewed sense of purpose in
pursuing our goals and mission to elevate the role of pharmacies in
the health care industry. Last year was full of accomplishments
both big and small. These accomplishments have been the foundation
upon which we plan to execute an ambitious agenda in the coming
months and years.
I want to thank all of the shareholders for their continued
support of the Company. Through your tremendous loyalty we have
been able to reach new heights and seek out opportunities for
growth that will make a difference this year.
Significant Achievements
At the end of 2015, Progressive Care and its wholly owned
subsidiary PharmCo, LLC were on the precipice of great things. The
3(a)(10) transaction was completed in December 2015, eliminating
nearly $2 million in aged debt off the balance sheet. Without any
encumbrances, we moved steadfastly on our mission to transform the
role of the pharmacy in the healthcare system and achieve success
through aggressive growth of our brand and level of service.
Our first achievement came in early in the year by moving to the
OTC Pink Current Information Tier. We also engaged an auditing firm
to conduct third party reviews of our quarterly financial
statements. Our efforts greatly improved the visibility and
reliability of our public information, providing more trust and
transparency to our shareholders.
We then embarked on a schedule of investor conferences to
provide shareholders and investors an opportunity to interact with
the management team in person. These conferences yielded
relationships and feedback that have helped us navigate our future
as a public company. With the wind at our back we began taking the
necessary steps to reach the next level both financially and
operationally.
During the summer of 2016, the pace of the companys development
accelerated with Chicago Ventures as our secured financing partner
and the engagement of Boustead Securities, a California based
broker/dealer (Formerly Monarch Bay Securities) to locate and
secure mergers and acquisitions. With the first tranche of funds
from Chicago Ventures, we have been able to complete the build-out
of the warehouse space and start our new business venture, Smart
Medical Alliance, a healthcare consulting company. Its goal is to
unify the performance of the pharmacy and the physician to generate
optimal health outcomes.
During the third and fourth quarters, the operation experienced
many developments. With the warehouse space built-out and the
Script Pro automation system installed, the filling capacity of the
pharmacy has nearly tripled. The new work flow systems have
improved efficiency, decreased waste, and enhanced accuracy. It
also has allowed for more square footage to be devoted to long term
care pharmacy services.
During 2016, PharmCo achieved 20,000 prescriptions filled in a
single month, sustained positive cash flows, and profitability.
Prescription counts grew over 20% and revenues grew over 34% when
compared to 2015. Growth trends were due in large part to expanded
marketing efforts, directed advertising, and word-of-mouth of
PharmCos performance rating and the ability of the pharmacy to
improve the performance ratings of the physicians it serves. The
company provides services to nearly 12,000 patients of diverse
demographics across South Florida.
2016 Key Highlights
- OTC Pink Current Information
- Engagement of PCAOB auditing firm for third party reviews of
financial statements
- Secured financing partner: Chicago Ventures
- Secured Broker/Dealer Partner: Boustead Securities
- Attended multiple investor conferences
- Conducted Quarterly Earnings Calls
- Completed build-out of warehouse space
- Installed Script Pro Automation System
- Achieved 20,000 prescriptions filled in a single month
- Started Smart Medical Alliance, healthcare consulting
company
- Became the primary 340B pharmacy for Empower U
- Switched Pharmacy Services Administration Organization (PSAO)
and primary wholesale vender to Epic Pharmacy Network and
McKesson
- Increased year-over-year prescription counts and revenues by
over 20% and 34% respectively
- Cash flow positive and positive earnings
Outlook
2017 brings many uncertainties for the healthcare industry.
Changes are already underway by Pharmacy Benefits Management (PBM)
companies to restrict networks, lower reimbursements, greatly
reduce fee-for-service contracts and enhance capitated risk and
performance reviews. In addition, government policy remains in flux
with regard to regulations and maintenance of the healthcare system
as a whole. As we adjust, we have been making great strides in
diversifying our patient and physician base. We are also
continually updating our products and services to best meet the
needs of our customers as well as comply with the rules of an ever
changing industry.
To start the year, we have engaged Berkowitz Pollack Brant, a
PCAOB auditing firm, to conduct a full audit of the Annual Report
to be issued for 2016 results. This will be the first set of
audited financial statements of the company since 2011. As we move
forward with our growth agenda, we will make sure that audited
financial statements are no longer an impediment to securing the
right avenues of advancement and development.
PharmCo has already secured another 340B contract with Community
AIDS Network which will be active as of April 1, 2017. We look
forward to developing this and all of our revenue streams including
non-sterile compounding, Medication Therapy Management (MTM), and
long term care. We will aim to maintain a stable foot hold in the
community and continue to grow organically as we expand across the
Southern half of Florida.
PharmCo also established a resource center in Century Village of
Pembroke Pines with over 17,000 residents over the age of 55 years
old. This resource center is for the exclusive use of Century
Village residents and acts as a linkage point for the residents to
get information about their prescriptions and what PharmCo can do
for them. We anticipate that this resource center will yield
profitable results during the year and be a platform to reaching
the surrounding health care providers and other Century Village
communities in Florida.
The following are our strategic goals for 2017:
- Achieve 25,000 prescriptions filled in a single month by
December 2017
- Increase annual overall sales to $22 million
- Secure additional 340B contracts and long term care facility
relationships
- Secure MSO contracts from insurance carriers for Smart Medical
Alliance
- Achieve accreditation for non-sterile compounding
- Continue full enterprise profitability and earnings growth
- Publish audited financial statements and leverage these
statements to secure new investment opportunities for mergers and
acquisitions
- Achieve profitability for the Century Village and Smart Medical
Alliance ventures
Closing Remarks
Many of our shareholders have been with the company for many
years. They have witnessed downturns most other companies would not
be able to overcome only to see us now steadily climbing the
mountain of success. 2017 will be a year of tremendous change for
the healthcare industry, but with this comes the opportunity to
seize great prosperity for those who are ready. This company has
the ability to adapt at a moments notice and is ready to take
advantage of the momentum we have built over the last 2 years. With
our corporate vision, team of skilled professionals, and the
strength of our convictions to guide us, we believe that this year
will be our best yet.
Best regards,
S. Parikh Mars,
Chief Executive Officer
Progressive Care, Inc.
About Progressive Care (RXMD)
Progressive Care, Inc. (OTC PINK: RXMD), through its subsidiary
PharmCo, LLC, is a South Florida health services organization and
provider of prescription pharmaceuticals specializing in health
practice risk management, the sale of anti-retroviral medications
and related medication therapy management, the sale and rental of
durable medical equipment and the supply of prescription
medications to long term care facilities.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Any statements contained in this press release that are not
statements of historical fact may be deemed forward-looking
statements. Words such as "continue," "will," "may," "could,"
"should," "expect," "expected," "plans," "intend," "anticipate,"
"believe," "estimate," "predict," "potential," and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, whether Progressive Care or its business continues to
grow and whether any additional financing can be secured by
Progressive Care and whether such additional financing will be
adequate to meet the Company's objectives. All forward-looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements, many of which are
generally outside the control of Progressive Care and are difficult
to predict. Examples of such risks and uncertainties include, but
are not limited to: (i) Progressive Care's ability (or inability)
to obtain additional financing in sufficient amounts or on
acceptable terms when needed; (ii) Progressive Care's ability to
successfully expand in existing markets and enter new markets;
(iii) Progressive Care's ability to successfully manage and
integrate any acquisitions of businesses, solutions or
technologies; (iv) unanticipated operating costs, transaction costs
and actual or contingent liabilities; (v) the ability to attract
and retain qualified employees and key personnel; (vi) adverse
effects of increased competition on Progressive Care's business;
(vii) changes in government licensing and regulation that may
adversely affect Progressive Care's business; (viii) the risk that
changes in consumer behavior could adversely affect Progressive
Care's business; (ix) local, industry and general business and
economic conditions. Additional factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements can be found in the most recent annual
report contained in our Consolidated Financial Statements for the
Year Ended December 31, 2015 and the subsequently filed quarterly
reports in our Consolidated Financial Statements for the Quarter
Ended March 31; June 30; and September 30, 2016
(Unaudited) filed with OTC Disclosure and News Service and
current reports on Form 8-K filed by Progressive Care with the
Securities and Exchange Commission. Progressive Care anticipates
that subsequent events and developments may cause its plans,
intentions and expectations to change. Progressive Care assumes no
obligation, and it specifically disclaims any intention or
obligation, to update any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by law.