Certive Solutions Inc. (CSE:CBP) Provides Corporate Update
22 February 2014 - 5:32AM
Marketwired Canada
The Board of Directors of Certive Solutions Inc. ("Certive" or the "Company")
(CSE:CBP) is pleased to announce the following material corporate and business
development activities that have been previously disclosed in the Company's MD&A
for the quarter ended November 30, 2014.
1. On November 12, 2013 the Company announced the launch of its web site
www.certive.com. The web site defines the Company's brand and direction
within the revenue management lifecycle of the U.S. healthcare system.
In particular it identifies many near term targeted opportunities in a
subset vertical market known as denied claims management, a category
which is more particularly described below.
2. For the three months ended November 30, 2013 the Company recorded its
first revenue in the aggregate sum of C$20,000 from consulting services
provided to a strategic partner engaged in complementary sub-segments of
revenue lifecycle management. The engagement will lead to a larger
statement of work to design and develop an automated workflow solution
for level of care billing by emergency departments in U.S. hospitals.
Revenue is regularly lost by hospitals due to a reluctance to bill to
the maximum level of care associated with the delivery of services based
on lack or process in care documentation.
3. During the quarter ended November 30, 2013, the Company established
strategic relationships with two Arizona-based companies that have both
local connectivity and credentialed relationships with hospitals located
in Arizona and other states. Through these associations the Company is
securing the infrastructure to support and deliver its automated
workflow solutions to a total of 20 hospitals currently being serviced
by the two partners. Initially, the Company will be participating in
revenue recovery from one such hospital, targeting one category of
denied claims.
4. During the quarter that ended November 30, 2013, the Company invested a
total of C$175,000US into the design and development of its proprietary
cloud technology solution for denied management claims. This expenditure
represents the Company's focus and direction on developing solution
based services supported by our technology.
5. On January 17, 2014, the Company announced the closing of its private
placement of common shares totaling C$2,100,000 by way of the sale of
21,000,000 Units at a price of C$0.10 per Unit. Each Unit is comprised
of one share one half-share purchase warrant. Two half-share warrants
entitle the purchaser to purchase one share at a price of $0.15 per
share. In addition, on January 17, 2014, the Company also announced a
non-brokered private placement of convertible debentures. The total
amount of the debenture is C$400,000 and is convertible into 2,666,666
common shares. Interest will be paid on the debenture at 5% per annum.
The term of the debenture is 5 years. Both placements replace the
previously announced C$9,600,000 private placement of common shares
which has been terminated.
The net proceeds of the new private placements are being used to develop
specific software solutions applicable to automating workflow in revenue
lifecycle recovery, engaging in market development activities, engaging
with strategic partnerships and for general working capital purposes.
6. Business Development: During the last five months, the Company initiated
a two phase program to generate near term revenues from both revenue
recovery in U.S. hospitals and specifically, Arizona based hospitals,
and from consultative services offered in the development of specific
use cases.
A summary of these programs is as follows:
Phase 1
-- Identify two strategic associations with connectivity in selected
hospitals in Arizona and leverage the connectivity to establish near
term revenue opportunities. Two such relationships have be attained with
the result that the Company will be participating in revenue generated
from the recovery of denied claims in one hospital commencing in
February 2014. The number of hospitals represented by these strategic
relationships total 20, five of which are located in Arizona. The
revenue model will be a combination of revenue share and consulting
services.
-- Establish an advisory group with additional connectivity to hospitals
and hospital systems outside of Arizona. The Company has established an
advisory group consisting of three highly credentialed individuals who
will make introductions to known decision makers in various hospitals
located throughout the U.S. Initially, all revenue generation activity
will be focused on denied claims recovery and the various subset
categories.
-- Commitment to develop technology solutions that will drive revenue
recovery and foster strong and growing alliances with hospital decision
makers. During the quarter, the Company spent C$175,000 as a first step
to developing its unique solution set for its targeted markets. This
expenditure provided support to our sales and marketing initiatives and
forged strong ties to our technology partnerships. Management
anticipates ongoing developmental expenditures.
-- Initiate involvement in public health and safety markets with two highly
credentialed partners in Arizona. The Company has established two
relationships in the related field of public health and safety. These
partnerships will work closely together with the Company to develop and
facilitate a cohesive workflow solution enablement toolset for the
management of public health and safety crisis, initially in Arizona and
extending throughout the U.S. One of the partners will serve to market
the solution to other counties in the U.S. The revenue model will be a
combination of consulting services and cloud licensing fees.
-- The Company has entered into agreements with two strategic partners and
will collaborate in the collection of automobile accident claims for a
physician practice group located in Phoenix, Arizona.
Phase 2
-- Expand the number of hospitals under contract in both Arizona and other
states targeting denied claims using strategic partnerships.
-- Identify acquisition targets, who are currently service providers in the
Company's targeted segments of healthcare.
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.
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
Canadian National Stock Exchange nor its regulation services provider (as that
term is defined in the policies of the Canadian National Stock Exchange) accepts
responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Certive Solutions Inc.
Brian Cameron
Chief Financial Officer
602-865-9356
bcameron@certive.com
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