Skylight Health Group Completes Divestiture of Legacy Business to New Frontier Data
December 15 2021 - 7:00AM
Skylight Health Group Inc. (NASDAQ: SLHG; TSXV:SLHG) (“Skylight
Health”, “Skylight” or the “Company”), a multi-state primary care
group in the United States, today announced the closing and
divestiture of its Canna Care Docs and Relaxed Clarity (“Legacy
Business”) to New Frontier Data.
- The legacy business was engaged in
clinical evaluations and recommendations for patients seeking
medical cannabis for state regulated conditions;
- New Frontier Data purchased 100% of
the Legacy Business for a total cash consideration of USD
$8,628,000 set forth in the terms below;
- Skylight will utilize cash proceeds
from the sale to purchase additional primary care practices as well
as working capital; and
- This divestiture allows Skylight to
continue its focus on its core business of the traditional
healthcare market and support of value-based primary care
models.
“We remain proud of the work we achieved together as a team in
building the legacy business; this move forward is critical towards
building our primary and value-based care business in the United
States,” said Prad Sekar, chief executive officer. “Fee-for-service
(FFS) primary care providers are facing enormous challenges in
terms of increased costs and competition while concurrently trying
to navigate a move towards value-based care. Skylight Health Group
is well positioned to support, navigate, and lead alongside
physician-owned primary care practices towards a radically changing
primary care market.”
The transaction closed on December 15, 2021; terms of the
transaction are a total cash consideration of USD $8,628,000. The
closing payment of $4,000,000 is subject to customary working
capital holdbacks, with the remaining balance paid over three
installments at 12 months, 18 months, and 24 months from the date
of closing.
Finally, the Skylight Health Group announces the grants of
219,318 shares issued to directors pursuant to the restricted stock
unit plan as part of their annual compensation. Additional grants
include 60,000 share purchase options to employees which expire in
five years as well as 50,000 share purchase options to consultants
that expire in 15 months. All share units and purchase options, as
applicable, are priced at CAD $1.78.
ABOUT SKYLIGHT HEALTH GROUP INC.
Skylight Health Group (NASDAQ:SLHG;TSXV:SLHG) is a healthcare
services and technology company, working to positively impact
patient health outcomes. The Company operates a US multi-state
primary care health network comprised of clinics providing a range
of services from primary care, sub-specialty, allied health, and
laboratory/diagnostic testing. The Company is focused on helping
small and independent practices shift from a traditional
fee-for-service (FFS) model to value-based care (VBC) through our
proprietary technology, unique data analytics and our robust
operations infrastructure. In a FFS model, payors (commercial and
government insurers) reimburse on an encounter-based approach which
puts a focus on volume of patients per day rather than creating
positive patient outcomes. In a VBC model, providers are rewarded
for keeping patients healthy and lowering unnecessary health costs
instead of volume of services. VBC will lead to improved patient
outcomes, reduced cost of delivery and drive stronger financial
performance from existing practices.
FORWARD LOOKING STATEMENTS
This press release may include predictions, estimates or other
information that might be considered forward-looking within the
meaning of applicable securities laws. While these forward-looking
statements represent our current judgments, they are subject to
risks and uncertainties that could cause actual results to differ
materially. You are cautioned not to place undue reliance on these
forward-looking statements, which reflect our opinions only as of
the date of this release. Please keep in mind that we are not
obligating ourselves to revise or publicly release the results of
any revision to these forward-looking statements in light of new
information or future events. When used herein, words such as "look
forward," "believe," "continue," "building," or variations of such
words and similar expressions are intended to identify
forward-looking statements. Factors that could cause actual results
to differ materially from those contemplated in any forward-looking
statements made by us herein are often discussed in filings we make
with the Canadian and United States securities regulators,
including the Securities and Exchange Commission, available at:
www.sec.gov, and Canadian Securities Administrators, available at
www.sedar.com, and on our website, at: skylighthealthgroup.com.
Investor Relations: Jackie Kelly
investors@skylighthealthgroup.com 416-301-2949
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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