- Trxade announces pricing of a firm commitment public offering of 806,452 shares of its common stock
- Proceeds to be used as working capital and to fund future acquisitions
- Company’s B2B online purchasing platform currently has 11,900 pharmacies registered and is registering 100+ New pharmacies per month
Trxade Group Inc. (NASDAQ: MEDS), an integrated drug delivery, procurement, and healthcare platform that offers healthcare buyers and sellers of pharmaceuticals increased profit margins, announced that its common stock has begun trading on the Nasdaq Capital Market under new ticker symbol ‘MEDS’, as of February 13, 2020. The company’s common stock will cease trading on the OTCQB.
The company also announced the pricing of a firm commitment public offering of 806,452 shares of its common stock at $6.50 per share. Trxade Group granted a 45-day option to underwriters to buy up to an additional 120,967 shares of common stock to cover overallotments, or post-reverse stock split. The offering was expected to close on or around February 18 (http://nnw.fm/nfIU9).
Before deducting offering expenses and underwriting reductions, Trxade Group expects gross proceeds of $5.2 million from the sale of common stock in the offering. The company intends to use the net proceeds from the offering for general purposes and working capital, as well as to possibly fund acquisitions of other products, companies or technologies.
Dawson James Securities, Inc., Dougherty & Company LLC, and View Trade Securities, Inc. are acting as the underwriters of the offering.
Trxade has developed a proprietary web-based e-commerce platform (S2P – Supplier to Pharmacy) that enables trade among pharmaceutical, accessory, and service buyers and sellers. The platform currently has about 11,500 pharmacies as registered users, through which it reaches between 12 million and 15 million patients. The company aims to reach most, if not all, of the estimated 24,000 independent pharmacies currently operating in the U.S., with combined pharmaceutical purchases of $93 billion per year. The U.S. pharmaceutical industry, which is worth $330 billion, is comprised of 1,500 state-licensed suppliers and more than 65,000 pharmacy facilities, 24,000 of which are independent.
The platform offers multiple benefits such as significant discounts that contribute to a 7-10 percent decrease in the annual purchase expenses for pharmacies; no registration and transaction fees for pharmacies; a simple and intuitive interface that helps pharmacies compare prices and select the best offer with guaranteed security for purchases and payments. Revenue is generated from two primary sources: the growing number of registered users and an increase in the platform’s utilization rate among registered users. The company is adding over 100 pharmacies to its platform per month and has plans to soon provide access to other healthcare providers, such as hospitals, veterinary clinics and long-term care facilities.
The U.S. healthcare market is currently valued around $4 trillion. As the general population ages, further growth is expected, which in turn will have increasing impact on consumers as out-of-pocket expenses rise as well. Trxade aims to lower prescription drug costs by attacking the inefficient value chain, delivering drugs directly to independent pharmacists and consumers, and offering efficient purchasing and price transparency. Its integrated drug procurement, delivery and healthcare platform also delivers increased profit margins.
Founded in 2010, the company is comprised of three synergistic operating platforms: the B2B trading platform with 11,900 registered pharmacies, licensed virtual Wholesale and Mail Order Pharmacy capabilities including the mobile app DelivMeds, as well as the newly acquired assets of Bonum Health, a telemedicine platform.
For more information, visit the company’s website at www.TrxadeGroup.com
NOTE TO INVESTORS: The latest news and updates relating to MEDS are available in the company’s newsroom at http://nnw.fm/MEDS
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