TAMPA, Fla., Aug. 10, 2004 (PRIMEZONE) -- Rx Processing Corporation (Pink Sheets:RXPC), a leading source of low-cost prescription medications for the millions of Americans who have no prescription insurance coverage, has acquired Canada Drugs of Spring Hill. Canada Drugs is a mail order prescription-processing center that finds the best prescription drug prices for customers by sending their prescriptions to licensed pharmacies in Canada and the United States. All prescriptions are filled with either U.S. or Canadian government-approved drugs.
Peter Fiorillo, CEO of Rx Processing, commented, "Now that Canada Drugs of Spring Hill and its more than 3,000 customers are part of our network, we move closer to reaching our revenue goal of $20 million within the next three years. By joining forces, we are better prepared to meet the needs of millions of Americans, as well as large benefits management organizations."
George Donnelly, Canada Drugs president, added, "American citizens are rightfully upset about paying a high price for their brand-name prescriptions, while the same drugs cost a fraction of that price beyond our borders. I started this company a year ago to lift the burden of high drug costs off the American citizen, and this merger with Rx Processing takes us one step closer toward that goal."
Effective July 29, 2004, in an all-stock acquisition, Rx Processing Corp. and Canada Drugs of Spring Hill Inc. agreed to merge their operations, including Canada Drugs' affiliated storefronts. Rx Processing Corp. issued 5,000,000 shares of restricted common stock for 100 percent control over Canada Drugs, a Florida company. Peter Fiorillo subsequently returned 3,500,000 shares of his restricted common stock so as not to significantly increase the issued and outstanding shares of company common stock.
Canada Drugs of Spring Hill established its first store in February 2003. In just one year, the company had agreements with 30 storefronts, generating more than $3 million in revenue annually. In July 2004, during acquisition negotiations, Canada Drugs of Spring Hill signed 43 additional affiliate storefronts across the nation, for a total of 73.
With the closing of this merger, Rx Processing Corporation is cash-flow-positive and without any major outstanding debt, a company executive stated.
Rx Processing Corporation processes thousands of prescriptions every year, saving consumers 25-84 percent on the cost of their daily prescriptions. These reduced-cost medications are available through the company's more than 70 retail storefronts.
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