Progressive Care Inc (OTCMKTS:RXMD) Shoots Back at Distribution Rumors

Progressive Care Inc (OTCMKTS:RXMD) Shoots Back at Distribution Rumors


Progressive Care Inc (OTCMKTS:RXMD) shares have been suffering amid a sharp correction over the past month, pulling back as much as over 60% since printing intraday highs above $0.25 per share in early March. Last week, shares dove under the 50-day simple moving average and the key $0.10 level but rebounded sharply in Thursday’s action. Helping to drive the rebound, the company released an open letter to shareholders straight from its CEO, S. Mars.

In the letter, Mr. Mars primarily focused on two key issues. The first issue has to do with apparent rumors, now confirmed, that the company’s primary website was the victim of a hacking incident. According to the letter, “no patient or nonpublic information is available through our website, so no breach of personal data occurred.” The second issue addressed in the letter had to do with rampant speculation that the company stock has lately been the victim of speculative insider selling, with the company’s funding partner, Chicago Venture Partners, apparently seen as the most egregious offender. Quite definitively, Mr. Mars states in the letter that “I know with 100% certainty that no one within the company has sold a single share of stock.”

Progressive Care Inc (OTCMKTS:RXMD), through its subsidiary Pharmco LLC, trumpets itself as a company that provides prescription pharmaceuticals to individuals and institutions in South Florida.

The company operates a retail pharmacy that specializes in the sale of anti-retroviral medications and related patient care management; the sale and rental of durable medical equipment (DME), such as hospital beds, oxygen supplies, power wheelchairs, scooters, walkers, and other related equipment and accessories; and the supply of various prescription medications to long-term care facilities.

It also provides long-term care solutions to skilled nursing facilities, assisted living facilities, retirement centers and communities, doctors’ offices, and clinics. In addition, the company purchases, repackages, and dispenses prescription and non-prescription pharmaceutical products for its long-term care customers.

Further, it offers computerized maintenance of patient prescription histories; third-party billing; and consultant pharmacist services consisting of evaluation of monthly patient drug therapy and monitoring the institution’s drug distribution system, as well as home service and maintenance, defective product replacements, and free home installation and instruction services.

According to company materials, “Progressive Care Inc. (OTCQB:RXMD), through its subsidiaries Smart Medical Alliance, Inc. and PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, provider of tele-pharmacy services, the sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long-term care facilities, administration and practice management, utilization management, quality assurance, EHR Implementation, billing and coding, and health practice risk management.”

Find out when $RXMD stock reaches critical levels. Subscribe to Right Now by entering your Email in the box below.

As noted above, shares of the stock rebounded sharply on Thursday following the release of a shareholder letter in which the company CEO confronted negative rumors circulating about the company, including the potential for a leak of personal data through a hacking incident of its website, and speculation that the company stock was being dealt rampantly by insiders and a funding partner.

Clearly, the recent rout in shares has taken its toll on executive leadership, with the letter closing with a nostalgic look back at the great heights to which the stock had soared as recently as February and March.

“Today, all I can do is reinforce the confidence you have in me, this team, and this Company. This is the same Company it was 3 months ago: profitable, growing, determined. We want our shareholders to put their money behind us because they believe in us and want to be part of this unique story that is just beginning.”

Given the reaction of shares in Thursday’s action, the offer side of the inside market doesn’t appear to be populated by particularly heavy-handed sellers at present. Hence, this may be a good one to keep on the radar.

Currently trading at a market capitalization of $34.2M, RXMD has a bankroll ($419K) of cash on the books, which compares with about $181K in total current liabilities. RXMD is pulling in trailing 12-month revenues of $20.1M. However, the company is seeing flat action on the top-line on a quarterly y/y basis. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $RXMD stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $RXMD, either long or short, and we have not been compensated for this article.

Sign Up for our 100% FREE Oracle Dispatch Newsletter