NextPlat Announces Completion of Merger and Business Combination with Progressive Care Inc. as Company Focuses on Growth in Healthcare, Technology and Personal Wellness Markets

Rhea-AI Summary

NextPlat Corp (NASDAQ: NXPL) has completed the merger and business combination with Progressive Care Inc., making Progressive Care a wholly-owned subsidiary of NextPlat. As a result, Progressive Care's common stock has ceased trading on the OTCQB exchange effective October 1, 2024.

Under the terms of the merger, Progressive Care shareholders received 1.4865 newly issued shares of NextPlat common stock for each share of Progressive Care common stock they owned. The exchange was conducted automatically for shares held in brokerage and retirement accounts. Shareholders with physical stock certificates are requested to contact NextPlat's transfer agent, Equity Stock Transfer, for transfer instructions.

Charles M. Fernandez, Executive Chairman and CEO of NextPlat, stated that the merger creates a unified company focused on growth in healthcare services, technology, and personal health and wellness markets. He noted strong top-line growth and improving operational performance in the first half of 2024 and expects continued improvements in consolidated financial performance through business integration and new product launches.

Positive

• Merger completed, creating a unified company focused on growth in healthcare, technology, and wellness markets
• Strong top-line growth and improving operational performance reported for the first half of 2024
• Expected improvements in consolidated financial performance through business integration and new product launches

Negative

• Progressive Care's common stock ceased trading on the OTCQB exchange
• Potential integration challenges and redundancies elimination may affect short-term operations

Insights

Financial Analyst

The merger between NextPlat and Progressive Care marks a significant strategic move, potentially reshaping NextPlat's market position. This consolidation aims to leverage synergies in healthcare services, technology and wellness markets, which could drive revenue growth and operational efficiencies.

Key points to consider:

• The 1.4865 share exchange ratio for Progressive Care shareholders indicates NextPlat's confidence in the acquired assets.
• The delisting of Progressive Care from OTCQB suggests a streamlined corporate structure, potentially improving investor visibility and liquidity through NextPlat's NASDAQ listing.
• Management's emphasis on "strong top-line growth" and "improving operational performance" in H1 2024 is promising, but investors should look for concrete financial metrics in upcoming reports.
• The focus on eliminating redundancies and business integration could lead to cost savings, potentially improving margins.
• New product launches planned for the coming year may drive additional revenue streams, but their success remains to be seen.

While the merger presents growth opportunities, investors should monitor integration progress and financial performance in the coming quarters to assess the deal's true value.

Healthcare Industry Analyst

This merger positions NextPlat to capitalize on the rapidly evolving healthcare and wellness markets. The integration of Progressive Care's expertise in pharmacy services with NextPlat's e-commerce capabilities could create a unique value proposition in the healthcare technology space.

Key considerations for investors:

• The combined entity may be better equipped to address the growing demand for telehealth and digital health solutions, potentially capturing a larger market share.
• Progressive Care's pharmacy network could provide a strong foundation for NextPlat to expand its healthcare services offerings.
• The merger may enable the development of innovative health tech products, leveraging NextPlat's technology background and Progressive Care's healthcare insights.
• The focus on personal health and wellness aligns with current consumer trends, potentially opening up new revenue streams in the direct-to-consumer market.

However, investors should be aware that integrating healthcare operations with a technology-focused company can be complex and regulatory compliance in the healthcare sector will be crucial. The success of this merger will largely depend on effective integration and the ability to innovate while navigating the highly regulated healthcare landscape.

Progressive Care Stock to Cease Trading Today, October 1, 2024

COCONUT GROVE, Fla., Oct. 1, 2024 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat" or the "Company"), a global e-Commerce provider, today announced that following shareholder approvals, it has completed the proposed Merger Agreement and Plan of Reorganization ("the Merger") pursuant to which Progressive Care Inc. ("Progressive Care"), a controlled subsidiary of the Company, has become a wholly-owned subsidiary of the Company (the "Business Combination"). As a result of the Merger and Business Combination, Progressive Care's common stock has ceased trading on the OTCQB exchange effective today.

"The completion of our merger and business combination with Progressive Care creates a unified company focused on generating continued growth in large domestic and global markets for healthcare services, technology and personal health and wellness. Through the first half of 2024, each of our business operations have successfully generated strong top-line growth and steadily improving operational performance, and through elimination of redundancies, business integration and the launch of new products planned throughout next year, we expect to produce continued improvements in our consolidated financial performance," said Charles M. Fernandez, Executive Chairman and CEO of NextPlat Corp.

Under terms of the Merger Agreement, Progressive Care shareholders received 1.4865 newly issued shares of NextPlat common stock for each share of Progressive Care common stock they own immediately prior to the effective time of the Business Combination. The exchange of shares was conducted automatically for shares of Progressive Care common stock held in brokerage and retirement accounts. All Progressive Care shareholders who hold physical stock certificates are requested to promptly contact NextPlat's transfer agent, Equity Stock Transfer, for transfer and delivery instructions. Equity Stock Transfer can be reached at 237 W 37th St, Suite 601, New York, NY 10018 or via telephone at 917-746-4597 and e-mail at info@equitystock.com.

About NextPlat Corp
NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth sectors and markets including technology and healthcare. Through acquisitions, joint ventures and collaborations, the Company intends to assist businesses in selling their goods online, domestically, and internationally, allowing customers and partners to optimize their e-commerce presence and revenue. NextPlat currently operates an e-commerce communications division offering voice, data, tracking, and IoT products and services worldwide as well as pharmacy and healthcare data management services in the United States through its subsidiary, Progressive Care Inc.

About Progressive Care
Progressive Care Inc., through its subsidiaries, is a Florida health services organization and provider of Third-Party Administration (TPA), data management, COVID-19 related diagnostics and vaccinations, 340B contracted pharmacy services, 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, and health practice risk management.

Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to launch additional e-commerce capabilities for consumer and healthcare products  and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

Media and Investor Contact for NextPlat Corp:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net

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SOURCE NextPlat Corp.

FAQ

What is the exchange ratio for Progressive Care shareholders in the NextPlat (NXPL) merger?

Progressive Care shareholders received 1.4865 newly issued shares of NextPlat common stock for each share of Progressive Care common stock they owned immediately prior to the effective time of the Business Combination.

When did Progressive Care's stock cease trading following the merger with NextPlat (NXPL)?

Progressive Care's common stock ceased trading on the OTCQB exchange effective October 1, 2024, following the completion of the merger with NextPlat Corp.

What markets will the merged NextPlat (NXPL) and Progressive Care company focus on?

The unified company will focus on generating growth in large domestic and global markets for healthcare services, technology, and personal health and wellness.

How should Progressive Care shareholders with physical stock certificates proceed after the merger with NextPlat (NXPL)?

Shareholders holding physical stock certificates should contact NextPlat's transfer agent, Equity Stock Transfer, for transfer and delivery instructions. They can be reached at 237 W 37th St, Suite 601, New York, NY 10018, by phone at 917-746-4597, or via email at info@equitystock.com.