Calgary, Alberta--(Newsfile Corp. - November 21, 2024) - Comprehensive Healthcare Systems Inc. (TSXV: CHS) (the "Company" or "CHS"), an industry leader in healthcare benefits administration software and services, announces that TSX Venture Exchange has accepted the reinstatement of trading Company's stock.
The Company expects that its shares will resume trading on the TSXV during the week of November 25th, 2024.
The Company also wishes to provide an update in several important areas.
The Company has made significant progress in aligning its cost structure to the revenue base. It will now focus on sales and marketing initiatives which will require working capital to continue to fuel its growth.
Therefore, the Company plans to raise additional capital to allow it to focus on meeting significant working capital deficiency, its obligations and invest in future growth. The Company is in the process of talking to investors and anticipates that it will be raising capital in the near future.
As previously disclosed, the Company received debt funding of $400,000 USD (approximately $540,000 CAD) with a convertible option at an agreed permissible discount to the closing price per share of the Company recorded on the day before the conversion is approved by relevant and regulatory bodies. The conversion remains subject to acceptance of the TSX Venture Exchange. This debt is unsecured and US $ 200,000 of this debt was provided by a related party.
In addition, the senior management of the Company also infused a sum of USD 262,000 to assist with some working capital requirement. This transaction remains subject to acceptance of the TSX Venture Exchange.
The Company was required to hold an annual general meeting (AGM) on or before November 30th, 2024, as per the Alberta Business Corporate Act. The Company was not able to meet this requirement on time. It has set up its special and annual general meeting on January 15th, 2025, to meet this requirement.
The Company wishes to provide disclosure on a litigation mentioned in the audited financial statements dated December 31st, 2023. A Consulting company had filed a claim against the company for non-payment of management fees. The Company determined that the claim amount was approximately USD 300,000. The Company contested that claim and is pleased to inform that plaintiff's counsel has dropped their claim. The Company does not anticipate any future liability towards the above-mentioned claim.
In 2022, the Company further discloses that it had hired Ontogeny Capital Ltd, to assist the firm in raising capital Internationally. The Company paid an upfront fee of USD 50,000. The agreement has since been terminated.
The Company also announces that the expedited transaction for acquisition, which was first announced on September 22, 2022, which was terminated on December 31, 2022, and there is no further discussion with the target.
About Comprehensive Healthcare Systems Inc.
Comprehensive Healthcare Systems Inc. is a corporation incorporated under the laws of the Province of Alberta and is the parent company of Comprehensive Healthcare Systems Inc. (Delaware). The Company is a vertically integrated software as a services (SaaS) company focused on digitizing healthcare with Healthcare Benefits Administration solutions, providing reliable and high-volume transaction capable systems. The Company's state-of-the-art Novus 360 Healthcare Welfare and Benefits Administration (HWBA) SaaS platform is used by clients for all aspects of healthcare benefits administration (including self-funded employers, providers, and labor unions), providing healthcare administrative software and technology-enabled services.
FORWARD-LOOKING INFORMATION:
The press release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "budget," "believe," "project," "estimate," "expect," "scheduled," "forecast," "strategy," "future," "likely," "may," "to be," "could," "would," "should," "will" and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and conditional. These forward-looking statements are based on assumptions as of the date they are provided. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Additionally, there are known and unknown risk factors that could cause the Company's actual results and financial conditions to differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important risk factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements, include among others: general economic, market and business conditions in Canada and globally; market volatility; unforeseen delays in timelines for any of the transactions or events described in this press release; and the risk of regulatory changes that may impact the business of the Company. All forward-looking information is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking statement or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Comprehensive Healthcare Systems Inc.
For further information:
COMPREHENSIVE HEALTHCARE SYSTEMS INC. Chris Cosgrove, Chief Executive Officer E-mail: chris.cosgrove@comphealthcare.com Phone: 732.362.2010
