RXMD - Progressive Care OTCQB - 40 Million Revenue - Undervalued Gem - Due Diligence Package
DD
RXMD – Progressive Care Inc. (OTCQB)
Hi all, I would like to first acknowledge u/Piratee22 for helping write and discover this stock. I am grateful to have an amazing team of friends/investors always on the outlook for gems in the OTC exchange. I apologize to not being able to answer dm's here, but you can reach me in the Pennystock subreddit disc. under the username Archer, and Piratee22 is Pipi. I want to make it clear here that this is not financial advice, and the enclosed due diligence is references an opinion and is for information purposes.
Overview: Progressive Care offers personalized healthcare services and technologies including prescription pharmaceutical services, risk management and data analytics to healthcare organizations and providers. The company headquarter is based in South Florida. RXMD has created in 2010 - and the company has been actively trading on the OTC since 2012. In 2017 the company uplisted to OTCQB and currently as of November has submitted a confidential S-1 to uplist to NASDAQ. I expect the process for uplisting to be complete in 1-2 quarters or by end of year assuming the S-1 is accepted.
Highlighted business model:
Comprehensive retail pharmacies (including compounding and specialty) that fill over 45k prescriptions per month
PharmCo Smart Pack (think PillPack competitor)
PharmCo At Home – in home patient consultations
Virtual healthcare services (think Teladoc but focused on pharmacy)
340B Drug discount program for high risk and underinsured patient populations.
ClearMetrX (wholly owned subsidiary) provides data management and reporting services for health care organizations
Recently, during the 3rd Quarter earnings call, the CEO commented on how their business will interact with Amazon's at 18:30 - Here. It is not unheard of to see a future partnership with Amazon or buyout.
Financials:
Revenue: 40.6M FY2020 – 23% yoy growth
Assets: 9.9M, an increase from 8.5M in 2019
Liabilities: 12M, and increase from 10.8M in 2019. However, no toxic debts/convertible notes.
Cash on hand of 1.6M, increase from 759k in 2019
Year 2015 2016 2017 2018 2019 2020
Revenue (Annual) $14M $18M $20M $21M $33M $40M
Revenue growth YoY is fantastic and since they just moved their entire operations from a 3,300 sq ft facility to a newly constructed 11,000 sq. ft. facility I fully expect their revenue to increase well beyond projections. The CEO stated in an Oct press release:
“We are working simultaneously on multiple fronts to dramatically expand our reach and relevance, while cultivating multiple sources of sustainable recurring revenue.” “It’s not hyperbole to say that this is the most exciting time for the Company since I first became involved ten years ago,” said Mr. Weisberg further. “We believe our growth trajectory has the potential to accelerate significantly in the coming years, which will translate into greater value for our shareholders.”
Source
A press release from September further details the companies future revenue goals:
“We expect revenues of more than $40 million in 2020 at this point, given our growth rate and what we have accomplished so far this year,” noted Alan Jay Weisberg, interim CEO and Chairman of the Board at Progressive Care. “Several years ago, when our revenue was $15 million, we saw our path to $40 million in sales and described this to our shareholders. Now, we are running at over $40 million on the top line and see a path to $100 million and beyond as a basic extrapolation of our organic growth curve paired with our strategic agenda, which provides for an open run to serve all 50 states in prescriptions and data management, capitalize on strong deregulatory tailwinds. We are deep in the process of establishing this new leadership, and we have strong reason to believe we will have an exceptional executive team in place, with the experience, skills, and drive to foster that next step, very soon.”
Source
RXMD has a fantastic leadership team, including recently hired CFO Cecile Munnik who worked for $LII (Lennox International a 11 Billion market cap company) for many years as their SEC reporting and financial analysis. It is under my understanding that Cecile will be great help in the uplist process as her knowledge with SEC reporting is priceless. Along with Cecile Munnik, Oleg Firer, CEO of $NETE is an indepdent director, and audit committee member. It is possible there are connections between NETE and RXMD however it is all just theory as no public statements have been made at this time. RXMD has Think Equity and Lucosky Brookman LLP as their sponsors for uplisting, and aszkal Bolton LLP for their accounting/auditing (Same company as NETE).
I recently called the auditing company and spoke with the main auditor, he could only confirm that at this time RXMD has gotten the first (of probably a few) comments back from the SEC on what needs to be changed for the S-1. This is typical of uplists. The company submits S-1's until the SEC is happy.
Share structure**:** 1B a/s; 485M o/s; and a float of 409M. Market cap of 51M
Recent catalysts:
Verified profile on otcmarkets.com in 2/2021
Telehealth partnership with EagleForce Health, expanding COVID-19 testing and vaccination
Expansion into long-term care pharmacy services by moving to its new 11,000 sqft location in Hallandale Beach, FL
Confidental submission of form S-1 to the SEC
Telehealth partnerships with MyApps instead of acquirement, working to “integrate CallingDr™, the popular telemedicine and telehealth platform developed by MyApps, into Progressive Care’s PharmcoRx digital platform”.
ClearMetrX completed an automated 340B Data Feed integration to expand the total addressable market as a third-party administrator for 340B healthcare providers nationwide.
Partnership with DeliverSTAT, allowing the company to “compete with pharmacy delivery apps such as Capsule, PillPack, and ZipDrug in terms of functionality and technology”
Company plan for 2021:
Become SEC-registered and fully reporting instead of backend reported.
Develop/Acquire 340B Data Administrator to facilitate delivery analytics to healthcare providers
Develop/Acquire medical technology platform for proprietary telemedicine product
Secure additional not-for-profit healthcare contracts and long-term care facility relationships
Secure state licenses and accreditations to create nationwide market
Consolidate locations to achieve cost savings and greater scale
Launch nationwide PREP service
These plans can be found in their 2020 investor deck
Stock Price:
This is the 4 year weekly chart, showing a relative downtrend on little to no volume. Recent volume has curled the Accumulation and pushed the stock above this 2 year downtrend resistance. Yearly chart shows a golden cross forming on the daily as well.
Potential red flags:
Alan was also the CFO of several publicly traded companies (QuikByte Software, Inc., Getting Ready Corp., and Longfoot Communications Corp) which are all defunct presently.
SEC filings are not up to date and financials are audited as of the time of this dd.
Conclusion
I expect RXMD to do very well in the future 1+ years, the company has strong plans for growth with a very diverse team to get them there. I believe the stock is super under valued at a 50 million market cap. This should be trading 4-5x that at a minimum. NASDAQ evaluation will certainly help that - Amazon bought PillPack for 753 million 2 years ago
. I do have a position in this stock and plan on holding for many years to come!
https://www.reddit.com/r/pennystocks/comments...ame=iossmf
DD
RXMD – Progressive Care Inc. (OTCQB)
Hi all, I would like to first acknowledge u/Piratee22 for helping write and discover this stock. I am grateful to have an amazing team of friends/investors always on the outlook for gems in the OTC exchange. I apologize to not being able to answer dm's here, but you can reach me in the Pennystock subreddit disc. under the username Archer, and Piratee22 is Pipi. I want to make it clear here that this is not financial advice, and the enclosed due diligence is references an opinion and is for information purposes.
Overview: Progressive Care offers personalized healthcare services and technologies including prescription pharmaceutical services, risk management and data analytics to healthcare organizations and providers. The company headquarter is based in South Florida. RXMD has created in 2010 - and the company has been actively trading on the OTC since 2012. In 2017 the company uplisted to OTCQB and currently as of November has submitted a confidential S-1 to uplist to NASDAQ. I expect the process for uplisting to be complete in 1-2 quarters or by end of year assuming the S-1 is accepted.
Highlighted business model:
Comprehensive retail pharmacies (including compounding and specialty) that fill over 45k prescriptions per month
PharmCo Smart Pack (think PillPack competitor)
PharmCo At Home – in home patient consultations
Virtual healthcare services (think Teladoc but focused on pharmacy)
340B Drug discount program for high risk and underinsured patient populations.
ClearMetrX (wholly owned subsidiary) provides data management and reporting services for health care organizations
Recently, during the 3rd Quarter earnings call, the CEO commented on how their business will interact with Amazon's at 18:30 - Here. It is not unheard of to see a future partnership with Amazon or buyout.
Financials:
Revenue: 40.6M FY2020 – 23% yoy growth
Assets: 9.9M, an increase from 8.5M in 2019
Liabilities: 12M, and increase from 10.8M in 2019. However, no toxic debts/convertible notes.
Cash on hand of 1.6M, increase from 759k in 2019
Year 2015 2016 2017 2018 2019 2020
Revenue (Annual) $14M $18M $20M $21M $33M $40M
Revenue growth YoY is fantastic and since they just moved their entire operations from a 3,300 sq ft facility to a newly constructed 11,000 sq. ft. facility I fully expect their revenue to increase well beyond projections. The CEO stated in an Oct press release:
“We are working simultaneously on multiple fronts to dramatically expand our reach and relevance, while cultivating multiple sources of sustainable recurring revenue.” “It’s not hyperbole to say that this is the most exciting time for the Company since I first became involved ten years ago,” said Mr. Weisberg further. “We believe our growth trajectory has the potential to accelerate significantly in the coming years, which will translate into greater value for our shareholders.”
Source
A press release from September further details the companies future revenue goals:
“We expect revenues of more than $40 million in 2020 at this point, given our growth rate and what we have accomplished so far this year,” noted Alan Jay Weisberg, interim CEO and Chairman of the Board at Progressive Care. “Several years ago, when our revenue was $15 million, we saw our path to $40 million in sales and described this to our shareholders. Now, we are running at over $40 million on the top line and see a path to $100 million and beyond as a basic extrapolation of our organic growth curve paired with our strategic agenda, which provides for an open run to serve all 50 states in prescriptions and data management, capitalize on strong deregulatory tailwinds. We are deep in the process of establishing this new leadership, and we have strong reason to believe we will have an exceptional executive team in place, with the experience, skills, and drive to foster that next step, very soon.”
Source
RXMD has a fantastic leadership team, including recently hired CFO Cecile Munnik who worked for $LII (Lennox International a 11 Billion market cap company) for many years as their SEC reporting and financial analysis. It is under my understanding that Cecile will be great help in the uplist process as her knowledge with SEC reporting is priceless. Along with Cecile Munnik, Oleg Firer, CEO of $NETE is an indepdent director, and audit committee member. It is possible there are connections between NETE and RXMD however it is all just theory as no public statements have been made at this time. RXMD has Think Equity and Lucosky Brookman LLP as their sponsors for uplisting, and aszkal Bolton LLP for their accounting/auditing (Same company as NETE).
I recently called the auditing company and spoke with the main auditor, he could only confirm that at this time RXMD has gotten the first (of probably a few) comments back from the SEC on what needs to be changed for the S-1. This is typical of uplists. The company submits S-1's until the SEC is happy.
Share structure**:** 1B a/s; 485M o/s; and a float of 409M. Market cap of 51M
Recent catalysts:
Verified profile on otcmarkets.com in 2/2021
Telehealth partnership with EagleForce Health, expanding COVID-19 testing and vaccination
Expansion into long-term care pharmacy services by moving to its new 11,000 sqft location in Hallandale Beach, FL
Confidental submission of form S-1 to the SEC
Telehealth partnerships with MyApps instead of acquirement, working to “integrate CallingDr™, the popular telemedicine and telehealth platform developed by MyApps, into Progressive Care’s PharmcoRx digital platform”.
ClearMetrX completed an automated 340B Data Feed integration to expand the total addressable market as a third-party administrator for 340B healthcare providers nationwide.
Partnership with DeliverSTAT, allowing the company to “compete with pharmacy delivery apps such as Capsule, PillPack, and ZipDrug in terms of functionality and technology”
Company plan for 2021:
Become SEC-registered and fully reporting instead of backend reported.
Develop/Acquire 340B Data Administrator to facilitate delivery analytics to healthcare providers
Develop/Acquire medical technology platform for proprietary telemedicine product
Secure additional not-for-profit healthcare contracts and long-term care facility relationships
Secure state licenses and accreditations to create nationwide market
Consolidate locations to achieve cost savings and greater scale
Launch nationwide PREP service
These plans can be found in their 2020 investor deck
Stock Price:
This is the 4 year weekly chart, showing a relative downtrend on little to no volume. Recent volume has curled the Accumulation and pushed the stock above this 2 year downtrend resistance. Yearly chart shows a golden cross forming on the daily as well.
Potential red flags:
Alan was also the CFO of several publicly traded companies (QuikByte Software, Inc., Getting Ready Corp., and Longfoot Communications Corp) which are all defunct presently.
SEC filings are not up to date and financials are audited as of the time of this dd.
Conclusion
I expect RXMD to do very well in the future 1+ years, the company has strong plans for growth with a very diverse team to get them there. I believe the stock is super under valued at a 50 million market cap. This should be trading 4-5x that at a minimum. NASDAQ evaluation will certainly help that - Amazon bought PillPack for 753 million 2 years ago
. I do have a position in this stock and plan on holding for many years to come! https://www.reddit.com/r/pennystocks/comments...ame=iossmf
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