NextPlat Corp, a global e-commerce provider, has announced a definitive business combination agreement with its majority-owned subsidiary, Progressive Care Inc. Under this agreement, a wholly owned subsidiary of NextPlat will merge with and into Progressive Care, resulting in Progressive Care becoming a wholly owned subsidiary of NextPlat. Progressive Care shareholders will receive newly issued shares of NextPlat’s Common Stock as part of the deal, which is expected to close in the third quarter of 2024.
The merger aims to provide revenue synergies and significant initial annual operating cost reductions for both NextPlat and Progressive Care. By combining their strengths, the companies hope to achieve additional top-line growth, improved bottom-line profitability, and expanded consumer offerings. Through strategic investments totalling over $10 million in Progressive Care since August 2022, NextPlat has recapitalized the company to support its rapid growth, making it a consolidated subsidiary of NextPlat effective July 1, 2023.
The transaction has been unanimously approved by the Board of Directors of both NextPlat and Progressive Care and is subject to regulatory and stockholder approvals. With a focus on expanding access into the personalized healthcare services marketplace, the merger represents a strategic move by NextPlat to leverage synergies and enhance the value of both companies in the competitive e-commerce landscape.