Skylight Health Group Executes Definitive Asset Purchase Agreement to Divest Legacy Business to New Frontier Data
October 29 2021 - 11:39AM
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 execution of a
Definitive Agreement with New Frontier Data to divest 100% of
assets related to its legacy businesses Canna Care Docs and Relaxed
Clarity (“Legacy Business”).
- The legacy business was engaged in
clinical evaluations and recommendations for patients seeking
medical cannabis for state regulated conditions;
- New Frontier Data will be purchasing
100% of the Legacy Business for a total cash consideration of USD
$8,628,000 set forth in the terms below;
- Cannabis patients will continue to
receive services under the new management
- Skylight will utilize cash proceeds
from the sale to purchase additional primary care practices;
and
- This divesture allows Skylight to
now focus fully on the traditional healthcare market and support of
value-based primary care models.
“This is an important move forward for all team members of
Skylight Health Group,” said Prad Sekar, chief executive officer.
“This transaction cements our full commitment towards setting aside
medical cannabis and focusing on value-based care as we continue to
acquire primary, urgent and specialty practices in the United
States.”
Terms of the transaction will be a total cash consideration of
USD $8,628,000. Payment terms will include cash on closing of USD
$4,000,000, with the remainder of the balance paid over three
installments at 12 months, 18 months and 24 months from the date of
closing. Skylight expects to use the cash proceeds to further
acquire primary care practices in its pipeline. The transaction is
expected to close no later than November 30, 2021, subject to
customary closing conditions, exchange approval and board
approvals.
“New Frontier Data is excited to complete this transaction, a
material milestone in our continued commitment to provide the most
accurate and actionable intelligence on the global cannabis sector,
in which today the majority of consumption stems from medical
patients,” noted Giadha Aguirre de Carcer, New Frontier Data
Founder & Executive Chair. “Deeper understanding of the nuanced
differences between adult-use and medical consumption enables New
Frontier Data to further optimize brand-to-consumer engagement, to
continue driving industry maturation by setting higher data
collection and reporting standards, and to strengthen a value-based
medical cannabis space.”
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.
ABOUT NEW FRONTIER DATA.
New Frontier Data is the premier data, analytics and technology
firm specializing in the global cannabis industry, delivering
solutions that enable investors, operators, advertisers, brands,
researchers and policy makers to assess, understand, engage and
transact with the cannabis industry and its consumers.
Our mission is to inform policy and commercial activity for the
global legal cannabis industry. We maintain a neutral position on
the merits of cannabis legalization through comprehensive and
transparent data analysis and projections that shape industry
trends, dynamics, demand and opportunity drivers. Founded in 2014,
New Frontier Data is headquartered in Washington, D.C. with a
presence in Europe, Latin America and Africa. For more information
about New Frontier Data, please visit us at
www.NewFrontierData.com.
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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