- Restructuring whiz takes helm at RXMD
- New CEO takes no salary or other forms of compensation
- Company sees infusion of $6 million cash from key investors
- A synergistic tech-healthcare collaboration grows as financials show upward trend
Looks like something big is brewing at Florida-based Progressive Care (OTCQB: RXMD). Focused on health services, the company offers healthcare services and technology that supports the managed healthcare industry to reduce costs and improve quality of care. The company has been steadily building both its pharmacy and data-management divisions as revenues continue to improve. However, a couple of extremely revealing events recently transpired that may have set the course for considerable upside potential.
The first inkling of something big cooking was revealed in a September press release which announced that Progressive Care had successfully completed a recapitalization of its debt as well as a strategic investment of $6 million from NextPlat Corp. (NASDAQ: NXPL) (https://nnw.fm/5GnjA). Not only did NextPlat invest in RXMD, its CEO, Charles M. Fernandez, along with other investors, purchased approximately $2.8 million of outstanding convertible debt in the company. The press release also stated that Fernandez was named chairman of the board of Progressive Care.
Why would a technology-driven, global, e-commerce platform company and its CEO invest in a healthcare company such as Progressive Care? The answer might be found in NextPlat’s mission statement, which states that the company was “created to capitalize on multiple high-growth sectors.” It certainly appears that Progressive Care has been identified as a high-growth opportunity, which might be explained in part by Fernandez’s quote: “I look forward to working closely with the board and its leadership team to help ensure that during a time when technology is rapidly transforming the healthcare industry, Progressive Care can continue to innovate and make a positive impact on all stakeholders for years to come.”
This transaction becomes even more interesting when looking at the background of Fernandez, who “Fortune” Magazine called a “restructuring whiz” (https://nnw.fm/FmVz4). His Wikipedia page extols his accomplishments in identifying profitable start-up and dislocation opportunities as well as his impressive 30-year career in media, pharmaceuticals, healthcare, finance and technology while working alongside luminary investors such as Bill Ackman’s Pershing Square and Brookfield Asset Management (https://nnw.fm/uASZE).
The potential for substantial upside at Progressive Care becomes more apparent with a November press release that announced the appointment of Fernandez as the company’s acting CEO. Fernandez provided additional insight by saying: “As many of you are aware, I had joined the board of directors of Progressive Care as the chairman in September. My appointment as chairman was part of the $6 million investment made in Progressive Care in September 2022 by NextPlat Corporation, the company of which I am also the CEO and executive chairman. I will receive no salary or other forms of compensation for my work as CEO of Progressive Care. I am taking on this role with the goal of maximizing the synergies that exist between NextPlat and Progressive Care.”
No salary or other forms of compensation for his work as CEO of Progressive Care — who’s heard of that? Sure, he already made an investment, but that means he must make the company successful for the investment to pay off. And note that he says he’s taking on the role with the goal of “maximizing the synergies” between NextPlat and Progressive Care. Could there be a near-future technology infusion for RXMD to put it into the upswing of the healthcare market?
In December of last year, the company announced a reverse stock split (https://nnw.fm/7Z1xo). Fernandez said: “We are pleased to announce this reverse stock split as we believe it is in the best interest of our shareholders and will help Progressive Care to attract institutional investors as we continue to grow. The reverse stock split changes the price per share and number of shares outstanding but has no effect on the operations of our company nor its size and growth potential.” Notice the reference to “institutional investors,” Fernandez’s wheelhouse, and also note that an increased share price may be the last hurdle before a potential NASDAQ listing, which would open up a multitude of possibilities.
It doesn’t take rocket science to get an idea of what’s happening here. A recognized “restructuring whiz” with more than 100 significant mergers, acquisitions and product-development projects under his belt has made a substantial investment in and taken charge of RXMD. If the past is any prologue to the future, and if Fernandez’s record of success is any indication of future performance, he’s about to apply his “wizardry” to help supercharge growth at Progressive Care.
For more information about the company, visit www.ProgressiveCareUS.com.
NetworkNewsWire (“NNW”) is a financial news and content distribution company, one of 50+ brands within the InvestorBrandNetwork (“IBN”), that provides: (1) access to a network of wire solutions via InvestorWire to reach all target markets, industries and demographics in the most effective manner possible; (2) article and editorial syndication to 5,000+ news outlets; (3) enhanced press release solutions to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience comprising investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.networknewswire.com
NetworkNewsWire is part of the InvestorBrandNetwork