SCOTTSDALE, ARIZONA--(Marketwired - Sept. 7, 2016) - Certive Solutions Inc. (OTCQB:CTVEF) (CSE:CBP) - ("Certive" or the "Company"), is pleased to announce that effective September 2, 2016, the Company and the principals of Titan Health Management LLC (Titan) agreed to convert a total of US$1,800,000 in Certive's original purchase price for the assets of Titan into 6,000,000 common shares of Certive, at a deemed price of US$0.30 per share. The Company purchased the assets of Titan on July 1, 2014, for and in consideration of payment in cash, promissory notes in favor of Titan and its principals, common shares and convertible preferred shares, with conversion subject to earn-out provisions.
Integral to the stock settlement noted above, the Company will issue the originally agreed 1,000,000 common shares to the principals of Titan as a signing bonus. Pursuant to the terms of the earn-out attached to the 1,250,000 preferred shares, the Company is in agreement that the preferred shares qualify for conversion into 1,250,000 common shares and accordingly these shares will be issued at the same time as the shares being issued on the note conversion. Other reconciling items in the original Asset Sale and Purchase Agreement will be defined and agreed to within 30 days of this announcement.
All shares contemplated for issuance above will be issued subject to time-released escrow restrictions that will be specifically described in an escrow agreement to be entered into with the principals of Titan.
The Titan division has grown demonstratively since the asset acquisition in July, of 2014, from a business generating approximately $1.8 million in annual revenues to one generating over $4.5 million in annual revenues with opportunity for additional significant growth. As Certive's first acquisition, we are extremely proud of the dedication to hard work and excellence shown by all members of the Titan Division's management team and the staff in Tucson.
Thomas Hoehner and Todd Hisey, co-founders of Titan and managers of the Titan Division under Certive, jointly commented that "the goals and objectives we collectively set for ourselves in the early Certive days have come to pass and we look forward with excitement at the future opportunities for all stakeholders in this high energy enterprise. We are both delighted to accept the conversion of our purchase price into shares of Certive, particularly in the time of much anticipated growth in our company."
Van Potter, CEO, and Brian Cameron, CFO, stated that "the Titan asset acquisition marked the beginning of Certive with its entrance into revenue cycle management for hospitals in the United States. The Titan brand acquired by Certive over two years ago came with a referenceable vendor with over 15 years of historical experience with major hospital systems in the U.S. Certive has been very successful in building upon this brand, significantly growing the business, and providing additional opportunity to cross-sell services across both our operating divisions."
For more information, please visit our website at www.certive.com, or contact Certive directly at 480-922-5327.
About Certive Solutions Inc.
Certive Solutions Inc. (Scottsdale, Arizona) provides revenue cycle management solutions to the U.S. healthcare market. Certive's claim audit and recovery services, billing services, and software solutions help providers work with payers to efficiently manage the reimbursement process and improve financial performance. Certive's highly skilled and experienced management team, combined with proprietary workflow and analytics, audit and identify, and bill and collect, underpayments in accordance with contractual obligations between the public or commercial insurance carrier and the designated provider. The healthcare market is changing. Certive works with clients to provide efficient and effective solutions aligned with reform initiatives to improve healthcare and reduce costs.
FORWARD-LOOKING AND OTHER STATEMENTS
This press release contains forward-looking statements. These statements relate to future events or future performance and reflect our expectations and assumptions regarding our growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect our current beliefs and are based on information currently available to us. In some cases, forward-looking statements can be identified by terminology such as "may", "would", "could", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts.
A number of factors could cause actual events, performance or results, including those in respect of the foregoing items, to differ materially from the events, performance and results discussed in the forward looking statements.
Factors that could cause actual events, performance or results to differ materially from those set forth in the forward-looking statements include, but are not limited to:
- the effect of continuing operating losses on our ability to obtain, on satisfactory terms, or at all, the capital required to remain a going concern;
- the ability to obtain sufficient and suitable financing to support operations, development and commercialization of our services;
- the risks associated with the development of our technology;
- the risks associated with the increase in operating costs from additional development costs and increased staff;
- the timing and nature of feedback from customers; and
- our ability to successfully compete in our targeted markets.
Although the forward-looking statements contained in this press release are based on what we consider to be reasonable assumptions based on information currently available to us, there can be no assurance that actual events, performance or results will be consistent with these forward-looking statements, and our assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release. Forward-looking statements made in this press release are made as of the date of the original document and have not been updated by us except as expressly provided for in this press release. As required by securities legislation applicable to reporting issuers, it is our policy to update, from time to time, forward-looking information in our periodic management discussions and analyses and provide updates on our activities to the public through the filing and dissemination of news releases and material change reports.