Company: EHSI
Filing Date: 2025-09-02
Form Type: PRE 14A
Source: 0001437749-25-028137
Chunk: 32

Company: Elite Health Systems Inc.
Filing Date: 2025-09-02
Form: PRE 14A
Chunk 32
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ive rights.

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REASONS FOR THE INCREASE

Our Board believes that it is desirable to have additional authorized shares of common stock available for possible future financings, acquisition transactions, joint ventures and other general corporate purposes. Our Board also believes that having such additional authorized shares of common stock available for issuance in the future will give us greater flexibility and may allow such shares to be issued without the expense and delay of a special shareholders’ meeting unless such approval is expressly required by applicable law. Although such issuance of additional shares with respect to future financings and acquisitions would dilute existing shareholders, management believes that such transactions would increase the overall value of the Company to its shareholders.

There are certain advantages and disadvantages of an increase in our authorized common stock. Advantages include:

| ● | The ability to raise capital by issuing capital stock under the type of transactions described above, or other financing transactions. |

| ● | To have shares of common stock available to pursue business expansion opportunities, if any. |

| Disadvantages | of increasing the authorized shares of common stock of the Company include: |

| ● | The issuance of authorized but unissued stock could be used to deter a potential takeover of our Company that may otherwise be beneficial to shareholders by diluting the shares held by a potential suitor or issuing shares to a shareholder that will vote in accordance with our Board’s desires. A takeover may be beneficial to independent shareholders because, among other reasons, a potential suitor may offer such shareholders a premium for their shares of stock compared to the then-existing market price. We do not have any plans or proposals to adopt provisions or enter into agreements that may have material anti-takeover consequences. |

| ● | Shareholders do not have any preemptive or similar rights to subscribe for or purchase any additional shares of common stock that may be issued in the future, and therefore, future issuances of common stock may, depending on the circumstances, have a dilutive effect on the earnings per share, voting power and other interests of our existing shareholders. |

| ● | The additional shares of common stock for which authorization is sought in this proposal would be part of the existing class of common stock and, if and when issued, would have the same rights and privileges as the shares of common stock presently outstanding. |

There are three actions proposed in the near term that require an increase in the authorized shares of the Company’s common stock: (1) as previously disclosed by the Company in a Form 8-K filed with the Securities