MIAMI, FL –January 23, 2020 – Progressive Care Inc. (OTCQB: RXMD) (“Progressive Care” orthe “Company”), a personalized healthcare services and technology company,issues the following Letter to Shareholders from the CEO:
Allow me to beginby expressing our heartfelt gratitude to all of our committed shareholders foryour faith and patience as we move toward what we sincerely believe will be themost exciting and gratifying period in the Company’s history. None of thiswould be possible without you.
Before we talkabout where we are headed next, we must take a moment to appreciate how far wehave come.
2019 was aformative year for Progressive Care as a company, both in terms of our cultureand our character. Presented with unforeseeable exogenous obstacles early inthe year, could we muster the will and determination to adapt and createsuccess despite that adversity?
I am extremelyproud to proclaim here today – as we kick off a very promising new year – thatour team successfully rose to the challenges we faced early last year, and weenter 2020 stronger than we have ever been, more efficient than we have everbeen, and equipped with a more scalable model than we have ever had in placebefore in our history.
A year ago, weclosed 2018 on a very strong note, having just secured our flagship building inHallandale as well as funding of $1 million earmarked for an ambitioustech-centric 2019 vision – we are true believers in the potential for new andinnovative technology solutions to deliver personalized patient-centered care,and we had formulated a plan to deliver on that promise in 2019.
However, earlylast year, we were hit with deep cuts to reimbursements and monumental hikes infees in our PBM relationships. Those exogenous shocks refocused our team ongrowth and adaptation. The infusion of capital served as the company’slifeblood during this difficult but enormously valuable period. We strategizedand found multiple ways to become leaner and to effectively brace ourselves forthe impact of a more exploitative PBM landscape. But we also recognized that itwould take more than just good defense to successfully navigate the transition,so we ured our focus to growth and innovation.
In the first halfthe year, we saw extended growth in prescription counts and revenues. With afull year of PharmCo Rx Palm Beach to look forward to, we optimized ourbranding, workflow, and sales methods to deliver organic growth in the SouthFlorida area.
We also found atremendous M&A opportunity in Family Physicians Rx (“FPRx” or “FSRx”). With2 locations, prescription counts that exceeded 15,000 per month, revenues ofmore than $1 million per month, and a pharmacy mindset that closely mirroredthe Progressive Care model, we knew we had found a powerful value-addacquisition opportunity. After securing funding for the deal and workingthrough an intense round of due diligence that coincided with the completion ofour 2018 audit, we were able to close the acquisition on June 3, 2019.
There were othertrials and obstacles during the second half of the year, including afrightening personal health emergency (I’m 100% healthy now). But, in each andevery case, we rallied and overcame those challenges with a tenacity that willcontinue to define the Progressive Care corporate culture in the quarters andyears ahead. From the C-suite on down through the front line, every single oneof us took up the mantle of “survive and build at all costs”.
In particular, Iam extremely proud of the way this team performed in terms of the FSRxintegration and overall streamlining on the cost side. And, as Q3 2019 drew toa close, we started to see the fruits of our labor.
By October 2019,new contractual relationships with not-for-profit clinics and health careinstitutions began to come online and drive revenue and profitability growth.The collection of the buying power of all of our locations (North Miami Beach,Davie, Palm Springs, and Orlando) allowed us to negotiate more favorablediscounts and purchasing terms. We received our first 2019 performance bonuspayout that injected the adrenalin we needed to close out the year strongerthan ever. We began seeing payments from PBMs on a timely and less cumbersomebasis. We renegotiated the terms of our purchase of FSRx to the benefit of bothour shareholders and previous owners. We saw a $10 million revenue quarter, thehighest in company history. We filled more than 450,000 prescriptions in 2019,the highest in company history. We had over $32 million in sales, the highestin company history. All of these continue our trend of year-over-year growthfor the last 5 years. Our cash flow dramatically improved, as did ourprofitability, reputation, and ability to execute on new levels.
Additional 2019 Key Highlights
Looking to theyear ahead of us, we have a very ambitious agenda that will test us on manylevels.
Upon completion ofour 2019 audit, we intend to prepare a new S-1 filing for submission to theSEC. Our many accomplishments in 2019 have made previous drafts out-of-date.After registration with the SEC is complete, we will begin the process ofuplisting to a national exchange. We believe that our development as a companynow warrants that transition, which will provide us with access to a muchlarger, more diverse pool of prospective investors, including a much widerinstitutional investor audience.
We also lookforward to further developing our contract services segment, targetingnot-for-profit healthcare organizations. The robust growth we have seen in thisdomain now necessitates the development of a backend administration platform.We believe that our expertise in this area can lead to a significant newrevenue stream that will allow us to further capitalize on our sophisticateddata analytics capabilities even when we aren’t the dispensing pharmacy.
In addition, weestablished RXMD Therapeutics last year to deliver our own proprietary brands,including our exclusive line of CBD products. We do believe in the therapeuticbenefits of CBD and continue to move forward on building our portfolio ofproducts while we create the most efficient pathways for marketability.
We will also focusa great deal of our attention on building out the Hallandale location and theconsolidation of the North Miami and Davie pharmacies. We will realizesignificant savings in 2021 from this consolidation process and we firmlybelieve the building can support continued expansion in demand for our productsand services.
Above and beyondthese goals, my vision for the future will require an evolution into a new andmore scalable kind of healthcare company. We have been seeking a platform uponwhich we can build a unique telemedicine product. We are currently indiscussions related to achieving this goal and we strongly feel such a productwill play a key role for us in the future.
2020 Strategic Goals
2019 wasindescribably important in defining the future for Progressive Care because wefaced tremendous adversity, and not only survived, but thrived, and in theprocess proved to ourselves that we are capable of responding to a worst-casescenario by turning it into unprecedented success and new avenues of growth andopportunity. That’s a priceless lesson for an organization to learn.
We have also beenreminded of how grateful we are for our faithful shareholders, who continue tobelieve in us, and for the strength of our employees, who carried us through2019. We have employees that have been with us since the beginning, and weacquired a tremendous wealth of new talent through our FSRx transaction, all ofwhom continue to surprise us and enrich this company with their talents andhard work.
I have a uniquevision of the future and have always had a unique vision of what it means to beProgressive Care. That vision, and my purpose specifically, was never tested tothe extent it was last year. Yet it was our unwavering faith in purpose and thehard work that we do that produced record-breaking results. I am lookingforward to the future with a sense of renewed energy to achieve andrevolutionize healthcare beyond the pharmacy. I fundamentally believe that thisCompany cannot be stopped no matter the obstacle and I know beyond a shadow ofa doubt that the future of Progressive Care is bright.
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About Progressive CareInc.
Progressive Care Inc. (OTCQB: RXMD), through itssubsidiaries, is a Florida health services organization and provider ofprescription pharmaceuticals, compounded medications, provider of tele-pharmacyservices, the sale of anti-retroviral medications, medication therapymanagement (MTM), the supply of prescription medications to long-term carefacilities, and health practice risk management.
Cautionary Statement Regarding Forward-Looking Statements
Statements contained herein that are not based uponcurrent or historical fact are forward-looking in nature and constituteforward-looking statements within the meaning of Section 27A of the SecuritiesAct of 1933 and Section 21E of the Securities Exchange Act of 1934. Suchforward-looking statements reflect the Company’s expectations about its futureoperating results, performance, and opportunities that involve substantialrisks and uncertainties. These statements include but are not limited tostatements regarding the intended terms of the offering, closing of theoffering 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., itssubsidiaries, or its management, are intended to identify such forward-lookingstatements. These forward-looking statements are based on information currentlyavailable 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, orimplied by, these forward-looking statements.
ArmenKarapetyan, Progressive Care
SeniorAdvisor Business Development
CaitlinFranscell, CMW Media
Weband Application Development Contact:
MarcelloJaspan, Mass Ventures Corp
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