Skylight Health Group Executes Definitive Asset Purchase Agreement to Divest Legacy Business to New Frontier Data
TORONTO, ON – October 29, 2021 – 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.”