SOURCE: Progressive Care Inc.

Progressive Care Inc.

July 26, 2016 09:05 ET

Progressive Care Executes $2 Million Financing Agreement With Chicago Venture Partners

MIAMI, FL--(Marketwired - July 26, 2016) - 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 attorney's 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 Investor's 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 Company's 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 Company's obligations, and an additional 50% of all proceeds from the Investor for PharmCo's 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 Company's 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.