Company: EHSI
Filing Date: 2025-09-02
Form Type: PRE 14A
Source: 0001437749-25-028137
Chunk: 45

Company: Elite Health Systems Inc.
Filing Date: 2025-09-02
Form: PRE 14A
Chunk 45
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7, 2025 a meeting was held between PSS management and Company management to review data request responses.

On April 18, 2025 the Board met to further consider a potential acquisition of PSS and due to the related party nature of ownership and management of PSS the Board appointed Messrs. Leimkuhler, St. Lawrence and Gold to a special committee of the Board to consider such transaction (the “Special Committee”). Members of the Special Committee met with Dr. Jeereddi to discuss possible terms for the proposed Acquisition. After several meetings in early May, the parties agreed that an acquisition price of approximately $3 million would be fair to the sellers and the Company, and the sellers would be willing to accept payment in the form of shares of common stock of the Company. This arrangement was viewed as favorable to the Company in that the Company would be able to retain capital required for the further growth of its business.

On May 8, 2025 a presentation of PSS’ operations, financial information and other data was presented by PSS management to the Special Committee of the Board.

On May 16, 2025 additional materials requested were provided by PSS to the Company.

On May 19, 2025 Company management and PSS management discussed the additional materials.

On May 29, 2025 the Special Committee held a meeting to discuss the materials provided to date by PSS and consider next steps. The members of the Special Committee considered approaches to the valuation of the Company’s common stock to achieve the $3 million proposed transaction consideration. The Company evaluated the benefits of proposing a formula based on trailing average pricing, but given the fact that the Company was proceeding with a private placement with a pricing of $0.95 per common share, the Board reasoned that this would be a reasonable means of valuation of the common stock and proposed that the purchase price for all outstanding PSS equity be 3,158,000 shares of common stock ($3 million divided by $0.95). The current holders of PSS agreed that this would be an acceptable value for sale of PSS equity.

On June 11, 2025 the Special Committee met to discuss the terms of a proposed non-binding letter of intent (“LOI”) to purchase all the outstanding shares of PSS.

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On June 14, 2025 the Special Committee distributed a draft LOI to Dr. Jeereddi and PSS management.

On June 18, 2025 the