Progressive Care Executes $2 Million Financing Agreement with
Chicago Venture Partners
MIAMI, FL -- July 26, 2016 -- InvestorsHub NewsWire --
Progressive Care Inc. (OTC
PINK: RXMD), through its subsidiary Pharmco LLC, a South
Florida health services organization and provider of prescription
pharmaceuticals specializing in health practice risk management,
compounded medications, the sale of anti-retroviral medications and
related medication therapy management, and the supply of
prescription medications to long term care facilities, announces a
new financing agreement with Chicago Venture Partners.
On July 22, 2016, the Company entered into that certain
Securities Purchase Agreement (the Purchase Agreement), by and
among the Company and Chicago Venture Partners, L.P., a Utah
limited partnership (the Investor), whereby the Investor purchased
from the Company a certain 10% convertible promissory note
(the Note) in the aggregate principal amount of $2,205,000,
including a 10% OID and $5,000 attorneys fee. The Note is
convertible in 1 year at the lesser of Market Price or $0.05 on the
date of conversion. The purchase price is to be delivered in eight
(8) tranches. The Company has received the initial tranche of
$250,000 at the closing of the transaction. The Investor has issued
to the Company a series of seven (7) Secured Investor Notes, each
in the principal amount of $250,000.00, maturing twenty-one (21)
months from the date of the closing. The Investor agrees to pledge
a 60% membership interest in Typenex Medical, LLC, an Illinois
limited liability company, to secure the Investors performance of
its obligations under all of the Secured Investor Notes. In
addition, to secure the obligation of the Company pursuant to the
Note, the Company has agreed to grant to the Investor a first
priority security interest in the collaterals by entering into that
certain Security Agreement in favor of the Investor.
PharmCo, LLC has agreed to guarantee the Companys obligations
under the Purchase Agreement, the Note and the Security Agreement
by entering into that certain Guaranty Agreement in favor of the
Investor. Pursuant to the Guaranty Agreement, the Company has
agreed to pay to PharmCo 10% of all proceeds it received from the
Investor, as consideration to secure the Companys obligations, and
an additional 50% of all proceeds from the Investor for PharmCos
ongoing business operations.
The Company intends to use the net proceeds for general working
capital for PharmCo, LLC and Progressive Care Inc to further both
companies ongoing growth and development.
We are happy to be working with Chicago Venture Partners as our
long-term funding partner, stated S. Parikh Mars, CEO. The
execution of this agreement at a premium to the market shows the
trust they have in the Company and its mission. We now look forward
to accelerating our growth and reaching our goals for the
future.
About Progressive Care
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,
compounded medications, the sale of anti-retroviral medications and
related medication therapy management, and the supply of
prescription medications to long term care facilities.
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 Companys
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.
Contact
Armen Karapetyan
Senior Advisor Business Development
armen@progressivecareus.com