Praxsyn Corp (OTCMKTS: PXYN) is making a big move up the charts while the rest of the market falls after the Company announced it is negotiating the sale of millions of masks meeting the NIOSH N95 mask standard and similar standards, capable of protecting wearers from breathing in viruses, including Novel Coronavirus COVID-19.
According to the Company “We are currently evaluating multiple orders and vetting various suppliers in order to guarantee a supply chain that can deliver millions of masks on a timely schedule.
Praxsyn Corp (OTCMKTS: PXYN) bills itself as focused on realizing a vision of medical professionals to improve the lives of their patients. Headquartered in West Palm Beach, Florida, Praxsyn Corporation filed a couple of NT 10-Q’s in 2017 before being related to the pink sheets. PXYN carries $11 million in accounts receivable on its books and recently the Company announced its subsidiary, Mesa Pharmacy has resumed collections on its vast portfolio of existing Workers’ Compensation receivables. Mesa, a wholly owned subsidiary of the Company, provided specialized prescription compounding for Workers’ Compensation claims in the State of California. During 2014 and 2015, Mesa generated over $200,000,000 in gross revenues from compounded prescriptions. Although Mesa routinely sold its receivables, it currently owns a portfolio of receivables with a face value greater than $50,000,000. During 2017, the State of California, on behalf of insurance carriers, stayed certain liens held by Mesa which accounted for a reduction in the net realizable value of the portfolio. As a result, the Company adjusted the net realizable value of the portfolio at September 30, 2019 to $11,014,473. Pursuant to an order of the Workers’ Compensation Appeals Board, issued on January 21, 2020, the stays were lifted last week. As a result, Mesa and its collection company have resumed collections and have already begun to receive payments. Collection activity will continue while the company pursues permanent relief from the Workers’ Compensation Appeals Board.
In the latest release the Company states: “As this tragedy unfolds across the globe, hundreds of millions of surgical masks are being used every single day with worldwide demand increasing hourly. Prices are spiraling upwards and supplies are becoming extremely constrained. For suppliers that have inventory and a reliable supply chain, there are growing opportunities to sell masks and other medical supplies at increasing margins. Praxsyn is making a significant effort to ensure a stable supply chain in order to respond to this unfortunate world health crisis.
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Frank Brady, CEO of Praxsyn commented, “The masks that we are sourcing are made overseas for delivery to front line locations overseas, where the efforts to contain the Corona Virus are occurring. We realize the importance of containing the spread of this disease and want to do our part to make the world a safer place. In addition to helping fight the spread of this disease, we believe that our efforts will help bolster the name and reputation of Praxsyn as a emerging player in the global health industry.”
According to the Company ‘More updates to come!” which should be pretty evident if they are really going to sell millions of masks meeting the NIOSH N95 mask standard. As coronavirus continues to spread we should expect more and more companies to jump on the bandwagon.
PXYN has been putting out a flurry of press in recent days; on February 11 PXYN said it has signed a Letter of Intent to purchase Amelia Island Outpatient Surgery Center, LLC. In Fernandina Beach, Florida, home to the Amelia Island Concours d’Elegance. The state of the art, outpatient surgery center occupies approximately 9,000 sq. ft. of the two story, approximately 29,000 sq. ft. building, all of which Praxsyn has agreed to purchase. The balance of the space is intended for independent medical offices. It’s location on this resort island offers Praxsyn the ability to extract patient flow from as far south as Daytona Beach and as far North as Savanah, Georgia and West to Tallahassee. The building and land have an appraised value over $8,000,000. Management intends to syndicate a portion of the acquisition cost of the surgery center to the doctors working there to reduce acquisition debt while retaining majority ownership of the center.
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Currently trading at a $7 million market valuation PXYN has not filed financial statements since 2017 and all numbers are unaudited. According to a recently OTC disclosure PXYN has very little revenues, $289k in the treasury and $11 million in accounts receivable. They also have $8 million in current liabilities which could lead to significant dilution. PXYN has seen a fast rise after the Company said they are negotiating the sale of millions of masks meeting the NIOSH N95 mask standard to combat the coronavirus but there is no evidence the Company has the resources to complete this. PXYN is however, free to collect on its $11,014,473 in receivables. According to PXYN Collection activity will continue while the company pursues permanent relief from the Workers’ Compensation Appeals Board. We will be updating on PXYN when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with PXYN.
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Disclosure: we hold no position in PXYN either long or short and we have not been compensated for this article.