Certive Solutions Inc.
CNSX : CBP
OTCQB : CTVEF

Certive Solutions Inc.

January 19, 2016 08:30 ET

Certive Solutions Inc. Announces Acquisition of Two Companies

SCOTTSDALE, ARIZONA--(Marketwired - Jan. 19, 2016) - Certive Solutions Inc. ("Certive" or the "Company") (CSE:CBP)(OTCQB:CTVEF) announces that on January 15, 2016, pursuant to acquisition committee approval, the Company entered into a non-binding letter of intent to acquire 100% of the issued and outstanding common shares of two companies engaged in revenue cycle management for hospital systems.

Upon closing of the acquisitions, both companies will become wholly owned subsidiaries of Certive. The agreed combined purchase price is US$20,000,000, 90% of which will be paid in cash and 10% in stock. The stock will be valued at the lower of the closing price of Certive common shares on the Canadian Securities Exchange on the last business day prior to the closing date, or US$0.50 per share. A number of common share purchase warrants will form part of the stock consideration, exercisable at the lower of (i) US$0.05 above the closing price of Certive common shares on the Canadian Securities Exchange on the last business day prior to the closing date or (ii) US$0.55 per share. A total of up to 17,000,000 common shares and 4,000,000 common share purchase warrants may be issued in partial payment of the purchase price.

The Company intends to file the definitive agreement on the System for Electronic Document Analysis and Retrieval and a Form 9 Notice of Proposed Issuance of Securities with the Canadian Securities Exchange upon execution of the definitive agreement.

The Company reserves the right to pay finders' fees on the acquisitions in accordance with the rules governing such fees as established by the Policies of the Canadian Securities Exchange.

The closing date for the acquisitions is set for March 31, 2016, subject to receipt of regulatory, corporate, and all other necessary approvals, completion of financing, and execution of definitive acquisition agreements and other ancillary closing documents.

Certive continues to secure new lines of business within revenue cycle management, both internally and by way of acquisition, with significant growth potential.

Van Potter, CEO, and Brian Cameron, CFO, both co-founders of Certive, believe that these acquisitions represent a strategic decision to engage in new categories of revenue cycle management that is, and will continue to be, a much needed service offering for any revenue cycle enterprise serving the U.S. healthcare market. Equally important, the acquisitions will provide the leverage needed to bring together synergies among revenue cycle lines of business that will define Certive as a highly competitive force serving a growing list of healthcare providers.

For more information, please visit our website at www.certive.com.

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. In particular, the forward-looking information in this press release includes information regarding satisfaction of conditions precedent and the completion of the acquisitions and Certive's proposed changes after the acquisitions to its business. Actual results may vary from the forward-looking information in this press release. Material risk factors that could cause actual results to differ materially from the forward-looking information include failure to receive required approvals to the acquisitions or, if approval is obtained, the directors of Certive or the acquired businesses electing not to proceed with the acquisitions; and the Company not realizing its business objectives after the acquisitions. The material factors or assumptions that were used to develop the forward-looking information in this press release include the parties being able to satisfy the conditions precedent to the acquisitions and the acquired businesses achieving their business objectives. The Company's views regarding possible events, conditions or financial performance may change. Currently, the Company does not have a written policy for updating forward-looking information and management refers to Part 4A and Part 4B of National Instrument 51-102 for guidance on disclosing forward-looking information. As required by applicable securities legislation, as a reporting issuer, it is the Company's policy to update forward-looking information in its period management discussions and analyses, as required from time to time. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

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 proprietary workflow and analytics audits, identifies, bills, and collects 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.

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