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Skylight Health Group (TSXV:SLHG) agrees to sell legacy businesses

Health Care
TSXV:SLHG
29 October 2021 13:30 (EDT)

Skylight Health Group (SLHG) has signed a definitive agreement to sell its legacy businesses Canna Care Docs and Relaxed Clarity to New Frontier Data.

“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.”

The terms of the transaction will be a total cash consideration of US$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 providing 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,” added de Carcer.

Skylight Health Group is a healthcare services and technology company, working to positively impact patient health outcomes. It 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.

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 policymakers to assess, understand, engage and transact with the cannabis industry and its consumers.

Skylight Health Group Inc. (SLHG) is up 4.20 per cent, trading at C$3.72 at 1:09 pm ET.

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