Business
Skylight Health Group Announces Closing of $13.8 Million Bought Deal Financing and Share Consolidation
Skylight Health Group Announces Closing of $13.8 Million Bought Deal Financing and Share Consolidation.
About this update from Skylight Health Group Inc.
[{"type":"text","content":"\n NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES TORONTO, May 26, 2021 (GLOBE NEWSWIRE) -- Skylight Health Group Inc. (TSXV:SHG; OTCQX: SHGFF) (“Skylight Health” or the “Company”), a multi-state primary care management group in the United States, is pleased to announce that it has closed its previously announced bought deal offering of 9,857,800 common shares (the \"Common Shares\", each a \"Common Share\") in the capital of the Company at a price of C$1.40 per Common Share for aggregate gross proceeds to the Company of C$13,800,920 (the \"Offering\"), inclusive of the full exercise of the over-allotment option. The Offering was completed on a bought deal basis and was underwritten by a syndicate of underwriters led by Raymond James Ltd. as sole bookrunner and co-lead underwriter and Stifel GMP as co-lead underwriter on behalf of a syndicate including Beacon Securities Limited, Echelon Wealth Partners Inc., and Bloom Burton Securities Inc. (collectively the “Underwriters\"). Skylight Health intends to use the proceeds of the Offering to fund growth initiatives, including executing its M&A strategy, and for general corporate purposes. The Company is also pleased to announce that, in connection with the potential listing of the Company’s issued and outstanding Common Shares on the Nasdaq Stock Exchange, and as previously authorized by its shareholders, the Company is implementing a consolidation (reverse stock split) of its issued and outstanding Common Shares on a 5:1 basis. “This share consolidation positions us to access qualified investors on our Nasdaq uplist,” says Prad Sekar, CEO and Co-Founder. “We have spent the last 5 months meeting with US institutions who specialize in both small-cap and healthcare investing and have received strong support and internalized their feedback. This consolidation comes at the recommendation of those accounts, and our banking and capital markets teams, who believe this will help to achieve our growth going forward with a strong foundation.” The consolidation ratio was determined by the Company's board of directors in accordance with the parameters authorized by the Company's shareholders at the Company's annual and special meeting of shareholders held on February 22, 2021....