Company: EHSI
Filing Date: 2025-09-29
Form Type: DEF 14A
Source: 0001437749-25-030001
Chunk: 47

Company: Elite Health Systems Inc.
Filing Date: 2025-09-29
Form: DEF 14A
Chunk 47
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I.

On July 2, 2025 the Board approved the final form of the LOI.

On July 2, 2025 the Company, PSS and the selling shareholders of PSS executed the LOI.

On July 3, 2025 the Company disclosed the execution of the LOI in a Current Report on Form 8-K.

On August 26, 2025 the Board approved the form of Acquisition Agreement, initially drafted by members of Company management and the Special Committee, and negotiated with representatives of PSS.

On September 26, 2025 the Company and PSS and its owners signed the definitive Acquisition Agreement.

ELITE’S REASONS FOR THE ACQUISITION

During the course of its evaluation of the Acquisition Agreement and the transactions contemplated by the Acquisition Agreement, members of the Board and the Special Committee held numerous meetings, consulted with Elite senior management and legal counsel, and reviewed and assessed a significant amount of information. In reaching its decision to approve the Acquisition Agreement and the other transactions contemplated by the Acquisition Agreement, the Special Committee, in connection with its determination and recommendation to the Board, following such recommendation by the Special Committee, considered a number of factors that it viewed as supporting its decision to approve the Acquisition Agreement, including:

| ● | The Company believes the Acquisition will strengthen the Company’s health experience, access to providers and management team;                                                                        |
| ● | PSS is an operating business with revenue and positive net earnings, creating a stronger set of financial statements of the Company;                                                                  |
| ● | The Board believes the addition of an operating business with significant provider connections and management expertise will benefit the Company’s business and thus the stockholders of the Company; |
| ● | The Board believes the combined enterprise, the Company with PSS, will have greater access to capital and recognition by the public markets;                                                          |
| ● | A stronger financial and operating company will likely be viewed positively by State and Federal regulators and the commercial insurance and healthcare markets;                                      |
| ● | The Special Committee believes the terms of the transaction are favorable to the Company;                                                                                                             |

INTERESTS OF THE COMPANY’S CHIEF EXECUTIVE OFFICER IN THE ACQUISITION OF PSS

In considering the recommendation of the Board with respect to issuing shares of the Company’s common stock in the Acquisition and the other matters to be acted upon by the Company’s stockholders at the Meeting, the Company’s stockholders should be aware that the Company’s Chief Executive Officer is the majority shareholder of