TAMPA, Fla., June 21, 2004 (PRIMEZONE) -- Rx Processing Corporation (Pink Sheets:RXPC) announces today that it has signed a Letter of Intent (LOI) with Canada Drugs of Spring Hill. Under the terms of the LOI, Rx Processing Corp. and Canada Drugs of Spring Hill Inc., a Florida Corporation, have agreed to merge their operations.
Canada Drugs of Spring Hill was established in February 2003, as a mail order prescription-processing center that sends customer prescriptions to pharmacies in Canada and the United States. Canada Drugs started with one store and $7,000 in sales, and has grown to over 30 locations within one year with sales of over $3 million. Canada Drugs of Spring Hill has positioned itself to be the mail order pharmacy for large organizations.
George Donnelly, President of Medical Evaluation Discount Services at Canada Drugs of Spring Hill, has 27 years in distribution/warehouse and manufacturing experience; he has transformed Canada Drugs of Spring Hill into a $3 million a year customer service focused mail order pharmacy, managing an extensive network of locations. Mr. Donnelly brings a tremendous knowledge and experience in this industry as proven by his remarkable results.
Peter Fiorillo, CEO of Rx Processing commented, "This merger strategically positions Rx Processing to continue implementing its business plan and retain more than the 6 new clients per day needed to drive this company to $20 million in sales within three years. Rx processing immediately upon merger will be cash flow positive and without holding any major outstanding debt. Management believes the affiliate base combined with the existing 3000+ clients, will drive our sales well beyond $60 million within the next 3 years. This new affiliate base expands the corporate retail store affiliates nationwide into states such as California, Georgia, and Illinois.
Rx Processing is in the business of providing U.S. citizens with access to low cost Canadian prescription pharmaceuticals. Current international pricing controls regulate the prices pharmaceutical companies can charge in their local market. The Company under the U.S. Government's Meds Act of 2000, provides U.S. citizens with access to these low cost prescription drugs. Utilizing Rx Processing, U.S. citizens can save 25%-84% on their daily prescriptions. These reduced cost medications are available at the Company's retail storefronts and through the website (www.mycanadadrugs.com).
Safe Harbor Statement
All statements other than statements of historical fact included in this press release are "forward-looking statements." The forward-looking statements, including statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements (i.e., future operational results and sales) are subject to assumptions and beliefs based on current information known to the Company and factors that are subject to uncertainties, risk and other influences, which are outside the Company's control, and may yield results differing materially from those anticipated.