MIAMI, FL--(Marketwired - February 21, 2017) - 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, issues updated information regarding recent market trading volume.
Progressive Care Inc. has received numerous requests to explain recent heavy selling in its common stock.
The company has learned that Midam Ventures, LLC, the company's Investor Relations consultant, sold 1,000,000 shares on February 13, 2017 and between 300,000 and 400,000 shares during the period February 8 to 10, 2017. It is not yet known whether Midam sold any additional shares before February 8, 2017 or after February 13, 2017. There is heavy selling today, February 21, 2017. The company does not know the identity of the seller or sellers.
Midam is contractually barred from selling more than 50,000 shares of Progressive common stock per day. On account of Midam's breaches of contract, Progressive has filed a civil action against Midam for breach of contract, seeking damages and a temporary injunction against further sales in excess of Midam's contractual limitations.
In connection with Midam's engagement as Progressive's IR consultant, Progressive issued Midam shares 20,000,000 shares in 2015 and 3,000,000 shares in October 2016. Under federal law, these shares were restricted from open-market sales for 1 year from issuance. As of February 8, 2017, Midam held 10,000,000 unsold shares from the 2015 issuance, which were no longer subject to the 1-year sales restriction. The 3,000,000 shares are still restricted.
The October 2016 written agreement between Midam and Progressive forbids Midam from selling more than 50,000 Progressive shares per day. That contractual prohibition applies to of all shares issued to Midam, including the shares issued to Midam in 2015.
Thus, Midam's sale of 1,000,000 shares on February 13, 2017, and any sales the prior week in excess of $50,000 per day were barred covered by this contractual limitation.
Progressive Care has filed a lawsuit against Midam, alleging breach of contract, seeking monetary damages, and also seeking a temporary injunction against further sales in breach of its agreement with Progressive, an immediate buyback of all shares sold in breach of the agreement, and other temporary relief.
The case is pending in the Circuit Court in and for Miami-Dade County, Florida, and is awaiting assignment of a case number. Progressive will be seeking an immediate hearing on the company's request for a temporary injunction.
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.