Company: EHSI
Filing Date: 2025-09-02
Form Type: PRE 14A
Source: 0001437749-25-028137
Chunk: 7

Company: Elite Health Systems Inc.
Filing Date: 2025-09-02
Form: PRE 14A
Chunk 7
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 APPROVE THE ACQUISITION OF PSS BY ISSUING 3,158,000 SHARES OF THE COMPANY’S COMMON STOCK PURSUANT TO THE TERMS OF THE ACQUISITION AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDERS OF PSS” and a copy of the Acquisition Agreement is attached as Annex A. PSS is a privately-held company, the majority of which is owned by Dr. Jeereddi, the Company’s Chief Executive Officer, and certain of his family members. The Company currently utilizes the capabilities of PSS, as well employees of PSS, in its efforts to pursue its plan to offer Medicare Advantage plans. As a result of its experience, the Company concluded that a closer relationship with PSS will enable it to more effectively grow its business in California and elsewhere.

What will happen to Elite if, for any reason, the Acquisition Agreement is not approved or the transaction is otherwise not consummated?

If, for any reason, the Acquisition is not consummated, Elite will not complete the share issuance pursuant to the Acquisition Agreement and Elite will continue to operate without owning the assets and businesses of PSS, but will likely pursue arrangements to continue to utilize the capabilities and services of PSS through contractual arrangements.

What interests do Elite’s current executive officers and directors have in the Acquisition?

The most significant interest of the Elite management team in the Acquisition is the ownership interest that Dr. Jeereddi, the Chief Executive Officer of Elite, has in PSS. He and a family member currently own approximately 90% of PSS and Dr. Jeereddi will receive approximately 1,452,680 shares of the Company’s common stock in connection with the transaction. No other director or executive officer of Elite has an interest in PSS at the present time. However, certain key employees of PSS will become employees of the Company as a result of the transaction.

Why am I being asked to consider other proposals unrelated to the Authorized Shares Increase Proposal and the Acquisition Agreement?

The timing of a special meeting to consider the Authorized Shares Increase Proposal and the Acquisition Proposal would have occurred around the time Elite would regularly hold an annual meeting of stockholders. For this reason, Elite determined to combine the two meetings in an effort to significantly reduce costs and administrative burdens and to reduce the burden on Elite stockholders who would otherwise receive two sets of proxy materials around the same time to consider and vote on two separate sets of stockholder proposals. The election of directors, the proposed 2025 Equity Incentive Plan and the