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Skylight Health Announces Strategic Investment from U.S. Institutional Healthcare Firm
Skylight Health Announces Strategic Investment from U.S. Institutional Healthcare Firm.
About this update from Skylight Health Group Inc.
[{"type":"text","content":"\n TORONTO, Oct. 21, 2022 (GLOBE NEWSWIRE) -- Skylight Health Group Inc. (TSXV:SLHG; OTCQX: SLHGF) (“Skylight Health” or the “Company”), a healthcare platform combining technology and analytics, focused on transitioning patients into value-based care to drive better health outcomes and experiences in the United States, today announced a strategic commitment of USD 5 million in the form of a convertible debenture from a multi-billion dollar growth-oriented healthcare institutional investment firm in the United States. The investment is set to close in two tranches. The first tranche of USD 3.37 million has been completed as of the date of this release and the second tranche for the remaining USD 1.63 million is expected to close within 30 days. The investment is structured in the form of a 0% interest, asset-backed convertible debenture. Each debenture shall be in the principal amount of C$1,000. Each debenture shall be convertible into 1,111 common shares of the Company at C$0.90 (“Common Shares”). Upon issuance of the debenture, the holder shall also receive 1,111 share purchase warrants (the “Warrants”) of the Company. Each Warrant entitles the holder to purchase one Common Share (a “Warrant Share”) at a price of C$0.90 for a period of 5 years from the date of issuance of the Debentures. Skylight has the option to repay the debt at any time at their election, without penalty, regardless of the share price. The funds will be used to support Skylight on its pathway to profitability. Over the last 2 quarters, the Company has seen and reported an improved EBITDA performance while growing its top line revenue. Additionally, it has made several announcements where it has both expanded and added new Medicare Advantage Plans which will lead to new membership expected for 2023. Skylight’s Joint Venture with Centene Corp/Collaborative Health Systems will also allow its traditional Medicare patients to benefit from increased funding in the upcoming ACO Reach program in 2023. “Skylight structured this investment to reduce dilution to shareholders while giving the Company a significant buffer to execute on its vision,” said Prad Sekar, CEO and Co-Founder of Skylight Health. “We’ve continued to show increased revenue and decreased burn and expect to re...