Company: EHSI
Filing Date: 2025-09-29
Form Type: DEF 14A
Source: 0001437749-25-030001
Chunk: 34

Company: Elite Health Systems Inc.
Filing Date: 2025-09-29
Form: DEF 14A
Chunk 34
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 $5 million of addition capital through the private placement of shares of its common stock, which will require the issuance of shares in an amount beyond its currently available authorized shares; (2) as described in Proposal Three the Company is requesting shareholder approval of the 2025 Equity Incentive Plan with 4,500,000 shares subject to the plan; and (3) as described in Proposal Four and previously disclosed by the Company in a Form 8-K filed with the Securities and Exchange Commission on July 3 2025, the Company entered into the Acquisition Agreement to purchase of all of the outstanding capital stock of PSS in exchange for 3,158,000 shares of the Company’s common stock.

In addition to these proposed transactions, the completion of which are subject to the approval of the Proposal Two, the Company will need to raise significant capital in the near term as described in its filings with the Securities and Exchange Commission, and may pursue other transactions that require the issuance or use of the additional shares of common stock. The Board does not intend to issue any common stock or securities convertible into common stock except on terms that the Board deems to be in the best interests of the Company and its shareholders.

Although an increase in the authorized shares of common stock could, under certain circumstances, have an anti-takeover effect, this proposal to adopt the amendment is not in response to any effort of which the Company is aware to accumulate our stock or obtain control of the Company. Nor is it part of a plan by management to recommend a series of similar amendments to the Board and shareholders.

If the Company’s shareholders do not approve the increase in authorized shares of common stock, then the Company will not be able to increase the total number of authorized shares of common stock from 25,000,000 to 50,000,000, and therefore, the Company will be limited in its ability to use shares of common stock for financing, acquisitions or other general corporate purposes.

VOTE REQUIRED; RECOMMENDATION OF THE COMPANY BOARD

This proposal will be approved if a quorum exists and the votes cast favoring this proposal exceed the votes cast opposing this proposal.

THE BOARD UNANIMOUSLY RECOMMENDS A VOTE FOR APPROVAL OF PROPOSAL TWO TO INCREASE THE COMPANY’S MAXIMUM AUTHORIZED SHARES TO 50,000,000.

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PROPOSAL THREE: TO APPROVE THE 2025 EQUITY INCENTIVE PLAN</div>

The Board recommends approval of the