Certive Solutions, a provider of revenue cycle management solutions, and the principals of Titan Health Management agreed to convert $1.8 million in Certive's original purchase price for the assets of Titan into 6 million common shares of Certive, at a deemed price of 30 cents per share.
Here are five things to know about the conversion.
1. The conversion took effect Sept. 2, more than two years after Certive purchased the assets of Titan.
2. As part of the conversion, Certive will issue the originally agreed 1 million common shares to the principals of Titan as a signing bonus.
3. In accordance with the terms of the earn-out attached to the 1.25 million preferred shares, Certive agreed that the preferred shares qualify for conversion into 1.25 million common shares, according to Certive.
4. Certive said other reconciling items in the original asset sale and purchase agreement will be defined and agreed to within the next 30 days.
5. In response to the conversion news, Thomas Hoehner and Todd Hisey, co-founders of Titan and managers of the Titan division under Certive, jointly commented in a statement 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."
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