Rx Safes, Inc. Releases Shareholder Update

HENDERSON, NV -- (Marketwired) -- 03/29/16 -- Rx Safes, Inc. (OTCQB: RXSF), a healthcare technology and medical device company, has released an update for its shareholders illustrated below.

Dear Valued Shareholders:

As we approach the end of the first quarter of 2016 and with the filing of our 10K, I felt it was important to conclude the year by offering clarification on some disclosures in our annual filing as well as provide insight into our strategy for the remainder of 2016. Rx Safes remains committed to building a solid and stable company for our shareholders and the markets that we serve.

As we have previously communicated, 2015 was a year dedicated to the reorganization of the Company's capital structure, continued corporate development, and a re-branding of our product offering. Rx Safes is well-positioned to capitalize on numerous opportunities for its newly developed products within the professional healthcare market, which would represent significant sales growth as our historical sales initiatives have been limited in resources. With that being said, the Company generated just over $50,000 in revenues as a result.

In 2015, the majority of our sales were generated through a pilot order from the Oklahoma Bureau of Narcotics. The order allowed the Company to measure its internal processing systems and gather feedback for the utility of the Rx DrugSAFE in addition to its acceptance in a controlled market. We are pleased to report that the program in Oklahoma was successful and we have received positive feedback, which validates our products' performance and reliability.

The financials also reflect a $5.8M net loss, which is mostly attributable to how we're required to calculate for stock based compensation and the derivative calculation of the options and convertible shares based on our extremely volatile share price throughout 2015. The Company netted $400,000 in new financing clearly illustrating that the numbers represent 'paper losses.' This also demonstrates that Rx Safes has made significant strides with limited financial resources. We will continue to manage our debt efficiently until more traditional funding is attained. In an effort to responsibly retire these debt obligations, the Company is working with new and existing note holders to establish strict "leak out" provisions and compliance procedures allowing the Company to monitor how and when any new convertible debt shares are introduced into the market. We believe that these provisions will foster an orderly market for our shareholders by slowly adding much needed shares to the public float while simultaneously retiring these debts. With limited float and trading volume, we have created a structured and steady process until we secure the necessary funding to fuel our strategic growth initiatives.

We have continued to move forward with the commercialization of our consumer products with the launch of a retail pilot program with CVS Pharmacy, which we expect to receive initial results from over the next 3 months. In addition to our pilot with CVS, we are actively seeking to expand our retail footprint for our consumer-focused products into other national retail pharmacy chains, home improvement retailers, warehouse clubs and security retailers.

The Company is also in the process of developing a direct doctor program, which will leverage a physician's relationship with their patients, our target consumer-based customers. Through this program, physicians are directly introducing their patients to our products and raising awareness on the importance of drug security with the support of a national marketing campaign. The initial roll out of this program will commence in June targeting more than 150,000 doctors in pediatrics, pain management specialists, as well as general practitioners. The Company is currently taking steps to fund and support the program while partnering with the large professional medical trade groups whose members will ultimately become our physician partners.

We recently appointed two experienced senior sales and marketing professionals to lead our sales initiatives and this demonstrates our commitment to growing our revenues in 2016. Salaries to these executives are accruing and will be paid at such time as the Company has adequate financial resources. The sales team recently completed a three-day sales and marketing strategy session where we worked diligently to establish clearly defined goals and priorities to secure sales and demonstrate our ability to ramp revenues rapidly in 2016, with a target of closing our first significant order by the end of the second quarter.

We are currently engaged in discussions with several medical device/equipment OEM's. In 2015, we introduced several new biometric medical device products designed to control the security and use of controlled substances at the end user level and invested additional resources to evaluate pursuing direct FDA certification for these devices. After careful cost and time consideration, it was determined that a quicker path to market for these products would come from partnering with existing OEM manufacturers. These OEM manufacturers provide the benefit of existing distribution channels and an experienced sales force, recognizable brands, and dominant market positions that will be more effective and expedient for any new product deployment. It is our goal to introduce these new products into the market through these established OEM partners while we continue to develop additional new and exciting products for the healthcare market.

We anticipate that our SafeDOSE infusion pump controller switch will reach the medical device market in 2016 through a relationship with a leading infusion pump OEM, and our MyDOSE needle free injector system will be introduced in early 2017, with an established pharmaceutical company as a partner, as to date, these devices have been required to be coupled with a formulary by the FDA for approval. The recent acquisition of a manufacturer of non-FDA approved disposable needle free injection system for $5.5 million by Inovio Pharmaceuticals illustrates that pharmaceutical companies are realizing the benefits of needle free, pain-free injectors and understand the commercial value of these devices and are starting to take steps to introduce them into the healthcare market. We believe that our re-usable MyDOSE biometric needleless injection system with push technology will provide a clear market advantage when tracking the usage of controlled substances.

Our Rx SafeEHR product presents a real value proposition to support the secure HIPAA compliant transfer of personal medical records as well as being a useful patient/member acquisition and retention tool for healthcare stakeholders. We have identified immediate opportunities for this device and are in the process of pursuing these to convert into sales. We also expect to initiate development of a next generation rolling medicine cart in late 2016 with an industry partner, utilizing our biometric technology to better secure, track and audit controlled substances in the healthcare facility.

Rx Safes also determined last year that it was necessary to effectuate a reverse-split of its common shares, in an effort to clean up our cap table as well as shed the Company of some toxic traders. This has had a positive net effect with our price per share remaining greater than our pre-split price. The Company believes the overall result of the reverse split was successful on many levels. It has allowed the Company to stabilize the stock price, provided the Company with a more attractive structure to meet more traditional funding requirements, and positioned the Company to more easily achieve listing requirements on a national exchange in order to garner the attention of institutional investors.

As was disclosed, in February we filed a lawsuit against third parties alleging that they defrauded the company between December 2015 and January 2016, for damages far exceeding $5,000,000. I cannot comment on the actual litigation at this point in time but I will continue to provide updates when we are allowed to do so. Rest assured, we are being very aggressive on behalf of our shareholders and we will not rest until this issue is resolved to our satisfaction and according to law. The Company is committed that any award in favor of our company will be returned to the market, quite possibly in the form of a stock buy-back program in order to repair the damage that the actions of these parties caused to our Company and its shareholders.

While we are disappointed by the activities that occurred in December and January, we are now in a more stable and promising environment evidenced by our ability to attract the interest of quality investment banking firms.

The Company retained The Ruth Group as its investor relations counsel in January 2016. The Ruth Group is a strategic communications firm based in New York City that has garnered a strong reputation as a healthcare-focused advisor to numerous NASDAQ and NYSE listed healthcare companies globally. Since retaining the Ruth Group, the Company has been introduced to investment bankers, investment funds, family offices, as well as brokers/dealers as part of its non-deal roadshows. The Ruth Group has provided valuable strategic support to the Company and continues on a course for further introductions by identifying and supporting the Company to present at various general and healthcare-focused investor conferences.

The Company has engaged the services of a seasoned business professional with extensive public company experience in the role of Chief Strategy Officer. The CSO has been working closely with myself and the Ruth Group to vet potential investment banking partners. The Company has committed to extensive due diligence, reviewing banker's deal flow over the last 3 years, the nature and structure of each deal, analyzing the types of investors associated with these funding initiatives and their overall competency and understanding of the markets we target.

It is my pleasure to announce that we have identified and are in final discussions with a premier investment banking firm to underwrite a $10,000,000 capital raise and simultaneously prepare the Company for an uplist to Nasdaq Capital Markets. The investment banker will work with the Company to meet the listing requirements in preparation for the uplist. We believe that this deal will be beneficial for both the Company and its shareholders as it will greatly increase the Company's visibility within the investment community. There is no guarantee that the company will meet the NASDAQ's exchange listing criteria at the time the company's S1 is approved, but we are already working diligently to meet these requirements and expect that the support of an investment banker will drive us to the finish line.

We recently started discussions with potential targeted acquisitions that have established manufacturing, markets and revenues for their products and will complement our products and markets. There is no guarantee that we will be able to acquire or partner with another company, but part of our 2016 expansion plan does include incorporating and/or acquiring companies that will help with our overall company growth in the areas of complimentary products, seasoned executive management and of course, established revenue generating products within our core focus in the securing of controlled substances.

The Company and its management team are more committed now than ever before as we are now seeing validation of our products and business model by the investment banking community. We believe the Company will grow rapidly once funding is secured and we expect to announce many new hires, business opportunities and partnerships in the coming year. We look forward to keeping our shareholders well informed on our progress.

On behalf of Rx Safes and its Board of Directors, we truly appreciate your continued support and patience while we embark on the next phase of the Company's growth. We hope that our positive outlook is shared by others as we remain committed to the success of the Company and in creating value for our shareholders.

Sincerely,

Lorraine Yarde CEO on behalf of Rx Safes, Inc. and the Board of Directors.

About Rx Safes, Inc.

RX Safes, Inc. designs, develops, engineers, and markets fingerprint medical devices and security storage solutions for consumers and healthcare professionals to regulate and secure the use of controlled substances at the end user (patient and consumer) level using patented, autonomous fingerprint technology that offers greater security and tighter controls over controlled substances. The company's innovative and unique biometric security products include biometric PCA infusion pump regulators (RxSafeDOSE), biometric needleless injectors (Rx MyDOSE) and a line of biometric security and storage products (Rx DrugSAFE product line) designed for hospitals, Emergency Service providers, professional healthcare workers, assisted living facilities, skilled nursing facilities, out-patient clinic, private physician offices, as well as consumers. It is estimated that more than 100 people die each day in the U.S. from misuse and unauthorized access to controlled substances with a social and economic price tag of over $600 billion. The Company is dedicated to providing comprehensive solutions to address the economic issues caused by drug diversion and unauthorized access to these medications, with products ranging from fingerprint medication safes, portable medical storage solutions, PCA pendants, Needle Free Injectors, locks and its revolutionary Rx SafeEHR product which is a portable HIPAA compliant electronic health record. The company works with OEM's to improve their legacy products by integrating its patented autonomous fingerprint technology, while innovating and producing its own products. For additional information please visit www.rxdrugsafe.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the successful execution of the Company's business strategy. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Such risks and uncertainties include, among other things, our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the availability of financing; the Company's ability to implement its long range business plan for various applications of its technology; the Company's ability to enter into agreements with any necessary marketing and/or distribution partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company's technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.

Like us on Facebook at https://www.facebook.com/rxsafes Follow us on Twitter at https://twitter.com/RxDrugSAFE

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Investor Relations Contact:
Tram Bui
Email Contact
646-536-7035

Source: Rx Safes, Inc.

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