- Trxade
announces pricing of a firm commitment public offering of 806,452 shares
of its common stock
- Proceeds
to be used as working capital and to fund future acquisitions
- Company’s
B2B online purchasing platform currently has 11,900 pharmacies registered
and is registering 100+ New pharmacies per month
Trxade Group Inc. (NASDAQ: MEDS), an integrated drug
delivery, procurement, and healthcare platform that offers healthcare buyers
and sellers of pharmaceuticals increased profit margins, announced that its
common stock has begun trading on the Nasdaq Capital Market under new ticker
symbol ‘MEDS’, as of February 13, 2020. The company’s common stock will cease
trading on the OTCQB.
The company also announced the pricing of a firm commitment
public offering of 806,452 shares of its common stock at $6.50 per share.
Trxade Group granted a 45-day option to underwriters to buy up to an additional
120,967 shares of common stock to cover overallotments, or post-reverse stock
split. The offering was expected to close on or around February 18 (http://ibn.fm/keqve).
Before deducting offering expenses and underwriting
reductions, Trxade Group expects gross proceeds of $5.2 million from the sale
of common stock in the offering. The company intends to use the net proceeds
from the offering for general purposes and working capital, as well as to
possibly fund acquisitions of other products, companies or technologies.
Dawson James Securities, Inc., Dougherty & Company LLC,
and View Trade Securities, Inc. are acting as the underwriters of the offering.
Trxade has developed a proprietary web-based e-commerce
platform (S2P – Supplier to Pharmacy) that enables trade among pharmaceutical,
accessory, and service buyers and sellers. The platform currently has about
11,500 pharmacies as registered users, through which it reaches between 12
million and 15 million patients. The company aims to reach most, if not all, of
the estimated 24,000 independent pharmacies currently operating in the U.S.,
with combined pharmaceutical purchases of $93 billion per year. The U.S.
pharmaceutical industry, which is worth $330 billion, is comprised of 1,500
state-licensed suppliers and more than 65,000 pharmacy facilities, 24,000 of
which are independent.
The platform offers multiple benefits such as significant
discounts that contribute to a 7-10 percent decrease in the annual purchase
expenses for pharmacies; no registration and transaction fees for pharmacies; a
simple and intuitive interface that helps pharmacies compare prices and select
the best offer with guaranteed security for purchases and payments. Revenue is
generated from two primary sources: the growing number of registered users and
an increase in the platform’s utilization rate among registered users. The
company is adding over 100 pharmacies to its platform per month and has plans
to soon provide access to other healthcare providers, such as hospitals,
veterinary clinics and long-term care facilities.
The U.S. healthcare market is currently valued around $4
trillion. As the general population ages, further growth is expected, which in
turn will have increasing impact on consumers as out-of-pocket expenses rise as
well. Trxade aims to lower prescription drug costs by attacking the inefficient
value chain, delivering drugs directly to independent pharmacists and
consumers, and offering efficient purchasing and price transparency. Its
integrated drug procurement, delivery and healthcare platform also delivers
increased profit margins.
Founded in 2010, the company is comprised of three
synergistic operating platforms: the B2B trading platform with 11,900
registered pharmacies, licensed virtual Wholesale and Mail Order Pharmacy
capabilities including the mobile app DelivMeds, as well as the newly acquired
assets of Bonum Health, a telemedicine platform.
For more information, visit the company’s website at www.TrxadeGroup.com
NOTE TO INVESTORS: The latest news and updates
relating to MEDS are available in the company’s newsroom at http://ibn.fm/MEDS
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