The worldwide e-commerce provider NextPlat Corp. could well be one of the companies that may warrant some attention this week, especially following the announcement from the company this past Friday.
The company announced at the time that it had entered into a definitive business combination agreement with Progressive Care Inc. (OTCQB: RXMD), its majority-owned subsidiary unit. It was a major new announcement from the company and one that could bring it on the radars of investors in a big way. The agreement had been negotiated by the special committees made up of directors of Progressive Care and NextPlat Corp.’s board of directors.
As per the terms of the definitive business combination agreement, a fully owned subsidiary unit of NextPlat Corp. would merge into and with Progressive Care. Eventually, the merger subsidiary would function as a fully owned subsidiary unit of NextPlat Corp. and be renamed Progressive Care LLC. Following the closure of the merger, the shareholders of Progressive Care would be awarded newly issued registered shares of the NextPlat Corp. common stock.
The ratio for the exchange had been determined on the basis of the 20-day volume-weighted average price of the NextPlat Corp. common stock prior to the execution of the business combination agreement. The value per share of the Progressive Care common stock had been $2.20. The board of directors of both companies approved the transaction unanimously, and it was further noted that it would close at some point in the third fiscal quarter of 2024.
The transaction would be closed at that point following the receipt of the necessary stockholder and regulatory approvals, in addition to meeting other usual closing conditions. The Chief Executive Officer of NextPlat Corp., Charles M. Fernandez, stated that over the past couple of years, the company has worked on better positioning for Progressive Care’s success and growth.
