- Tennessee-based Perimeter Pain and Primary Care Clinic is an established medical practice servicing over 12,000 patients per year.
- In 2019, the clinic generated CAD 2.2 million in revenues and CAD 400,000 in net income.
- Forecasted annual run rate now at over $20 million combined with the last 3 announced transactions.
- Skylight Health will pay a total cash consideration of CAD 1.03 million for the acquisition representing a 2.6x EBITDA multiple.
- This transaction will be immediately accretive to the Company adding complementary services and insurable revenue to the existing primary care model across 15 States.
TORONTO, Dec. 03, 2020 (GLOBE NEWSWIRE) -- Skylight Health Group Inc (CSE:SHG; OTCQX: CBIIF) (“SHG” or the “Company”), one of the largest multi-specialty healthcare systems in the United States, is pleased to announce that it has entered into a Letter of Intent (LOI) to purchase the assets of Healthcare Resources Management LLC (“HRM”) which operates Perimeter Pain and Primary Clinic (“Perimeter”) in Cookeville, Tennessee. The planned acquisition of HRM expands the Company’s bricks and mortar and telemedicine services to 15 States and will add 12,000 new patients to its current roster of 120,000.
HRM has been operating Perimeter in Cookeville for over 7 years with strong patient retention. Services to patients include primary care, chronic pain management, interventional procedures, weight management, regenerative medicine and aesthetics. Services provided by Perimeter are primarily reimbursed through insurance carriers including Medicare, Medicaid and other commercial payors.
The Company expects to see continued growth in patient registrations and visits as Perimeter continues to thrive among the challenges most clinics have faced due to the recent COVID-19 pandemic. Further, the Company will work quickly to expand on the current offering of services by leveraging its current telemedicine infrastructure to provide access to patients across the state of Tennessee. Upon completion, services offered by Perimeter will apply to Skylight Health’s entire patient base. These services are immediately accretive as they allow the Company to expand complementary billable services. Patients will continue to benefit from the expansion of services in-house. The Company will benefit by expanding the per patient insurable revenue share-of-wallet by retaining these services internally.
“Perimeter represents the first of complementary non-primary care acquisitions and is in direct alignment with our strategy to expand on services offered to our existing patient base nationally,” said Prad Sekar, CEO, Skylight Health. “Adding vital services like chronic pain management, interventional procedures and other from Perimeter will benefit tens of thousands of our current patients and will be deployed nationally within the existing framework of payor contracts in each state we are organically establishing over the next year.”
HRM represents the fourth announced acquisition by the Company in the last 60 days. This acquisition supports and strengthens the 3-prong growth model which includes growth from the current infrastructure, new services and acquisitions. The Company will pay as per the agreed upon terms of the LOI, a transaction value in cash of CAD 1.03 million representing an EBITDA multiple of 2.6x. Perimeter reported revenues in 2019 of CAD 2.2 million and net income of CAD 400,000. This transaction is subject to a satisfactory due diligence period by the Company and mutual agreement to an Asset Purchase Agreement and Closing Conditions. The transaction is expected to close on or before December 31, 2020.
The Company also announces the grant of 3,176,000 options to the directors and senior officers. Options have been granted as of the close of business December 2, 2020 at a strike price of $0.77 with no discount. The Company has also issued 125,000 shares at a price of $0.62 to certain consultants for services delivered.
About Skylight Health Group
Skylight Health Group (CSE:SHG OTCQX:CBIIF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state health network that comprises of physical multi-disciplinary medical clinics providing a range of services from primary care, sub-specialty, allied health and laboratory/diagnostic testing. The Company owns and operates a proprietary electronic health record system that supports the delivery of care to patients via telemedicine and other remote monitoring system integrations. healthcare services. With a patient roster of over 120,000 patients, the Company’s operations spread across 14 states and continues to expand in services and locations both organically and by way of strategic acquisitions.
The Company primarily operates a traditional insurable fee-for-service model contracting with Medicare, Medicaid and other Commercial Payors. The Company also offers a disruptive subscription-based telemedicine service for the un/under-insured population who have limited access to urgent care due to cost.
For more information please visit www.skylighthealthgroup.com or contact:
Investor Relations
Jonathan L. Robinson CFA
Oak Hill Financial
jrobinson@oakhillfinancial.ca
416-669-1001
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Skylight Health’s filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements regarding the Company’s unaudited financial results and projected growth.
Although Skylight Health as attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are subject to inconsistent legislation and regulation; change in laws; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and recreational-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Skylight Health disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Skylight Health does not assume any liability for disclosure relating to any other company mentioned herein.
No securities regulator or exchange has reviewed, approved, disapproved, or accepts responsibility for the content of this news release.