Skylight Health Announces Strategic Investment from US Healthcare Provider, The Canadian Business Journal

TORONTO, Oct. 21, 2022 (GLOBE NEWSWIRE) — Skylight Health Group Inc. (TSXV:SLHG; OTCQX: SLHGF) (“Skylight Health” or “we”) is a healthcare platform that combines technology and analytics. , focused on transitional patients. today announced his US$5 million strategic commitment in the form of a convertible debenture from a multi-billion dollar US growth-oriented institutional healthcare investment firm. The investment is expected to be completed in two tranches. The first US$3.37 million tranche has been completed as of the date of this release, and the remaining US$1.63 million second tranche is expected to be completed within his 30 days.

The investment is structured in the form of interest-free, asset-backed convertible bonds. The principal amount of each bond is $1,000 CAD. Each bond is convertible into 1,111 shares of our common stock (“Common Stock”) at $0.90 CAD. Upon issuance of the Notes, the holder shall also receive a purchase warrant for his 1,111 shares of the Company (the “Warrant”). Each Warrant gives the holder the right to purchase one share of common stock (“Warrant Share”) at a price of $0.90 CAD for five years from the date of issuance of the Notes. Skylight has the option to repay its debt without penalty at any time, regardless of share price.

This funding will be used to support Skylight’s monetization path. Over the past two quarters, the company has seen and reported improvement in his EBITDA performance and is growing top-line earnings. In addition, we made several announcements expanding and adding new Medicare Advantage plans leading to new memberships expected in 2023. Skylight’s joint venture with Centene Corp/Collaborative Health Systems will help traditional Medicare patients can also benefit from increased funding in the ACO Reach program scheduled for 2023.

Skylight Health CEO and Co-Founder Prad Sekar said: “We continue to show revenue growth and spending declines and expect to be cash flow positive in the next few quarters. We are thrilled to have strong institutional investors who understand the implications.”

Northland Capital Markets acted as the sole placement agent for the financing. In connection with the financing, we paid Northland a 7% CashFinder fee.

Convertible notes and warrants are subject to final approval from the TSX Venture Exchange and all securities are subject to a standard four month and one day holding period.

Additionally, our Board of Directors has approved and declared a November 2022 dividend of 9.25% on our Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”). Preferred stock trades under the “SLHGP” stock ticker symbol.

Subject to the terms of the Series A Preferred Stock, the Series A Dividend will be paid in cash to holders of record of the Series A Preferred Stock on the record date on November 21, 2022 at an amount of $0.1927 per share. . Date October 28, 2022.

About Skylight Health Group

Skylight Health Group (TSXV: SLHG; OTCQX: SLHGF) is a healthcare services and technology company committed to positively impacting patient health outcomes. The Company operates a multistate primary care health network in the United States consisting of physical practices that offer a wide range of services from primary care, subspecialty, allied health and lab/diagnostic testing. The company focuses on helping small, independent practices move away from traditional fee-based (“FFS”) model for value-based care (“VBC”) through proprietary technology, data analytics, infrastructure and other tools. In the FFS model, payers (both corporate and government insurers) reimburse through an encounter-based approach. This will focus on the number of patients per day. In the VBC model, providers provide care aimed at keeping patients healthy and minimizing unnecessary medical costs that are not proven to keep patients healthy. This emphasizes quality over quantity. VBCs can help improve patient outcomes, reduce shipping costs, and drive stronger financial performance from existing practices.

Forward-Looking Statements

This press release may contain projections, estimates or other information that may be considered forward-looking within the meaning of applicable securities laws. These forward-looking statements represent our current judgment, but 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. These statements reflect only our opinion as of the date of this release. We undertake no obligation to revise or publish the results of revising these forward-looking statements in light of new information or future events. As used herein, words such as “look forward to,” “believe,” “continue,” and “build” or variations of such words and similar expressions identify forward-looking statements. It is intended to Subject to Canadian securities regulators and Canadian securities administrators, factors that could cause actual results to differ materially from those envisioned in the forward-looking statements contained herein. Often discussed in writing, www.sedar.com and our website, skylighthealthgroup.com.

For more information, please visit our website or contact us below.

Investor Relations:
Jackie Kelly
[email protected]
416-301-2949

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.

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