Company: EHSI
Filing Date: 2025-09-02
Form Type: PRE 14A
Source: 0001437749-25-028137
Chunk: 44

Company: Elite Health Systems Inc.
Filing Date: 2025-09-02
Form: PRE 14A
Chunk 44
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 focus on the opportunities and risks associated with the Company’s financial condition and potential long-term strategic options.

In the summer of 2024, the Board and management performed a review of Elite’s strategic priorities and considered whether the acquisition of additional operational capabilities would enhance the Company’s ability to pursue its goal of operating a Medicare Advantage plan in California and elsewhere. The Company at that time, through consulting arrangements with PSS, had been utilizing these capabilities, as well employees of PSS, in the Company’s efforts to pursue its plan to offer Medicare Advantage plans initially in California. As a result of this experience, the Company began to consider the benefit of a closer relationship with PSS to enable it to more effectively employ the management, operational support, as well as human resources and information technology services of PSS, that would be necessary to support the growth of its business in California and elsewhere.

The capital stock of PSS is 100% owned by Dr. Jeereddi and his family members. However, because of the Board’s and management’s familiarity with PSS and its capabilities, and the suitability of PSS as a potential target business, the Board determined that the benefits of an acquisition transaction with PSS would far outweigh the potential conflicts of interest.

The Company believes that the capabilities of PSS will be helpful in establishing and in furtherance of processes, procedures and related corporate infrastructure that would be necessary to support Medicare Advantage plans. The Company further believes PSS will provide it with access to health services that will enable the Company to efficiently support those plans. The Board felt that not only would this bring valuable management resources to the Company, but would also provide key connections to health clinics and other marketplace participants that would be key in developing a provider network, in addition to the addition of an operating entity with revenue.

In July 2024 the Company and PSS entered into a mutual non-disclosure agreement and the Company made an initial data request of PSS.

On November 1, 2024 financial, corporate, HR and other related PSS documents were shared with the Company.

On November 19, 2024 additional follow up questions and documents were requested of PSS by the Company.

On November 29, 2024 the Board met to authorize the officers of the Company to commence a review of the business and operations of PSS with a view toward a potential combination transaction between the Company and PSS.

On December 31, 2024 additional materials and other responses to questions asked previously were provided to the Company.

On January