MIAMI, FL--(Marketwired - Jan 9, 2015) - Progressive Care Inc. (
Caremed is a retail pharmacy based in Miami, Florida and offers similar products and services as PharmCo, filling on average over 15,000 prescriptions per month in 2014. Caremed is currently a preferred provider in many pharmacy networks and is the pharmacy of choice for a large number of clinics in South Florida. The combined organization currently fills close to 30,000 prescriptions per month on average. The Company believes that this partnership will create economies of scale and harness the power of the each pharmacy's market strengths.
"This joint venture is an exciting new opportunity for both pharmacies to expand its market share. We believe that it will be the catalyst to remarkable growth and profitability in 2015," said Shital Parikh Mars, Chief Operating Officer.
"We have known about PharmCo for a long time and we are thrilled about this partnership. We think that working together will only lead to beneficial results for both companies," said Leslie L. Lorenzo, President of Caremed.
The Company believes that its success depends not only on organic growth but also on its ability to create synergistic partnerships. This co-joint venture is the first step in establishing relationships with a new range of providers that will ultimately propel long-term growth and increase shareholder value.
The agreement executed and effective on January 5, 2015 between Progressive Care Inc. and the owners of Caremed Pharmacy, LLC exchange 49% membership interests of PharmCo and Caremed. The new ownership structure is as follows:
|Progressive Care||New Owners*|
|Caremed Pharmacy, LLC||49%**||51%|
*The New Owners in the joint venture will divide their new membership into 3 parts based on each owners' former proportional interest in Caremed.
**Although Progressive will not own the majority interest in Caremed, its 49% stake represents a plurality of its outstanding membership. This, in conjunction with Progressive's management and control over the operation, will establish Progressive's interest as the controlling interest of Caremed for consolidated financial reporting purposes. Both PharmCo and Caremed will retain their names and current locations.
About Progressive Care (RXMD)
Progressive Care, Inc. (RXMD), through its subsidiary PharmCo, LLC is a South Florida provider of prescription pharmaceuticals specializing in 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 ("DME") and the supply of prescription medications to long term care facilities.
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 Condensed Interim Consolidated Financial Statements for the Years Ended December 31, 2013 and 2012 and the subsequently filed quarterly reports in our Consolidated Financial Statements for the Quarter Ended March 31; June 30; and September 30, 2014 (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.