Certive Solutions Inc.
CNSX : CBP

Certive Solutions Inc.

September 24, 2014 09:45 ET

Certive Solutions Inc. (CSE:CBP) Announces Acquisition of Knowledge Capital Alliance Inc.

SCOTTSDALE, ARIZONA--(Marketwired - Sept. 24, 2014) - Certive Solutions Inc. (the "Company") (CSE:CBP) is pleased to announce that effective August 31, 2014, the Company has successfully completed the purchase of the assets comprising, among other things, material contracts, intellectual property, management contracts, and employees of Knowledge Capital Alliance Inc. (KCA) with offices in Phoenix, Arizona. KCA has a 15-year history of providing business process management solutions to state and county governments, particularly specializing in business process management for public health related matters. KCA is a credentialed and highly recognized vendor to Maricopa County, the third largest county in the United States. The assets acquired include all of the computer hardware and software necessary to conduct the business, the contracts that KCA has with its customers, the brand and logos of KCA, and all of the intellectual property used by KCA to conduct its business.

The purchase price for the assets was five hundred and seventy nine thousand three hundred U.S. dollars (US$579,300), and will be paid by as follows:

  1. The Company will pay to KCA seventy two thousand U.S. dollars (US$72,000), in two equal tranches of US$36,000, one payment due on or before January 1, 2015 subject to the satisfactory transfer of all scheduled contracts, and the other due on or before January 1, 2016.
  2. The Company will issue to KCA a total of 900,000 common shares of its capital stock at a deemed price of $0.30 per share.
  3. The Company shall assume the KCA obligation to a promissory note in the amount of US$256,200 on the condition that the note is retired from the KCA cash flow.

KCA currently generates approximately US $1,000,000 in annual revenue and has developed and sold a proprietary business process management solution to the third largest county in the United States. This work flow solution will be offered to 2800 public health departments throughout the United States on a licensed basis.

The Company entered into a transition services agreements with KCA effective June 1, 2014 and accordingly all of the financial affairs of both companies will be consolidated with that of the Company's effective June 1, 2014 insofar as the Company had complete financial control of both enterprises as of that date.

Van Potter, CEO of the Company, stated that "this acquisition provides the Company with a niche revenue opportunity in public health, leveraging both core business process management expertise and cloud solutions. The acquisition fits perfectly within our strategy in health care."

ON BEHALF OF THE BOARD OF DIRECTORS OF CERTIVE SOLUTIONS INC.

Van Potter, President, CEO, Director

About Certive Solutions Inc.

Certive Solutions Inc. (Scottsdale, Arizona) provides cloud revenue cycle management solutions to U.S. hospitals, delivered collaboratively, utilizing proprietary workflow document management and analytics technologies tailored to healthcare business processes. Certive is currently focused on the denied claim segment of revenue cycle management. Certive's solutions enhance the efficiency and effectiveness of denied claims recovery in a revenue sharing relationship that improves hospital net operating results.

The forward-looking information contained in this press release is made as of the date of this press release and except as required by applicable law, the company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires the company to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Neither the company nor the Canadian Securities Exchange accepts responsibility for the adequacy or accuracy of this release.

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