E-commerce provider NextPlat (NASDAQ:NXPL) completed a strategic $7M investment in personalized healthcare services and technology company Progressive Care (OTCQB:RXMD).
The former is set to purchase 3,000 newly issued $6M Progressive Care units as part of the recapitalization transaction. Each unit is comprised of one share of series B preferred stock and one warrant to purchase the share.
NextPlat CEO Charles Fernandez, Board Member Rodney Barreto and certain other investors will invest an aggregate of $8.3M into Progressive Care.
Additionally, these investors will purchase $2.3M of outstanding convertible debt from an existing holder. The purchasers have agreed to a fixed conversion price of $0.02 per share and removal of the blocker. The interest rate on the debt is also set to reduce to 5% per annum from 10%.
Fernandez will be appointed chairman of Progressive Care, replacing Alan Jay Weisberg. Weisberg will assume the roles of vice chairman and CEO of the healthcare company.
Barreto will also be joining the company's board as vice chairman.
Dawson James Securities served as the placement agent for the transaction.