Skylight Health completes Larg –


Skylight doubles revenue and adds over 5,000 patient lives

  • NeighborMD (“NMD”) adds 9 practices in Central and South Florida with more than 2,400 lives at risk owned and affiliated worldwide. Unaudited 12-month (TTM) primary care revenue of US$35 million split approximately evenly between owned practices and affiliated practices, more than doubling Skylight’s current revenue rate
  • Obtained a US$20 million credit facility from FLC Credit Partners (“FLC”), a New York-based lender
  • All key management and operational teams will continue with Skylight, bringing a successful 5-year track record of generating excess under Medicare Advantage (“MA”) risk contracts
  • Company Plans to Expand At-Risk Contracts to Existing Florida Medicare Members and Payer Expansion with Recently Announced Joint Venture with Collaborative Health Systems

TORONTO, May 06, 2022 (GLOBE NEWSWIRE) — Skylight Health Group Inc. (SLHG; TSXV: SLHG) (“Skylight Health” or the “Company”), a multi-state primary care management group in the United States, is pleased to announce that following its May 3, 2022 press release, it has entered into the agreement to acquire NeighborMD (NMD) for $8 million and a US$20 million credit facility.

“We are very pleased to complete our largest acquisition to date and welcome the Neighbor MD team to the Skylight Health group,” said Prad Sekar, CEO and Co-Founder of Skylight Health. “Not only does this more than double our revenue rate and strengthen our market share in Florida, but it also significantly accelerates our entry into full risk in 2022, as originally planned for 2025. We are now strongly positioned with contracts at risk to start. focusing on our Florida pipeline which will showcase Medicare and MA growth.

Based in Central and South Florida, NMD operates 9 proprietary practices providing primary care services to over 5,000 lives. Of these, NMD has more than 1,100 MA lives in full-risk contracts with two major health care payers in Florida, Humana and CarePlus. In addition, NMD provides comprehensive management services for over 1,400 additional MA lives through its affiliate providers and firms. NMD’s existing contracts offer competitive capitation rates and allow for broad geographic coverage, with more than 30 Florida counties covered, including all counties in which the company currently operates. Among Medicare Advantage lives at risk, NMD currently has an average reimbursement of $10,000 to $12,000, per member/per year, which Skylight expects to maintain in the future, providing the capital to focus on needs patients and improve patient health outcomes. TTM’s revenue from primary care, including MA contracts, was approximately US$35 million on an unaudited basis. Although NMD has yet to generate profitability, with its scale in combination with Skylight and planned initiatives, it should become profitable this year. The expected extension of at-risk contracts to existing Skylight practices in Florida represents a significant organic growth opportunity.

The total consideration for NMD was US$8 million paid in cash at closing. Skylight financed this transaction with a drawdown of US$10 million from a US$20 million line of credit with FLC which will also be used as working capital to support integration and operational expenses. The Company will still have US$10 million and working capital available to fund further acquisitions. The term of the facility is 3 years, with an annual coupon of SOFR plus 11% paid in cash. The principal will be amortized on a quarterly basis and subject to certain cash flow triggers and a final lump sum payment. Cash payments, including interest, will begin in July. The Company may, at its discretion, reimburse the Lender in part or in full at any time during the term, without premium or penalty. FLC received an additional consideration of 4,542,345 warrants at a price of $1.17. The expiry date will be May 5, 2025, with respect to the percentage of the warrants which is equal to the percentage of the principal amount of the line of credit outstanding on May 5, 2023, compared to the amount outstanding on May 5, 2023. May , 2022, and the expiry date will be May 5, 2023, for the remaining warrants. Half (50%) of the Warrants will be escrowed and released pro rata to the percentage of the amount of any future drawdown.

About Skylight Health Group

Skylight Health Group (SLHG;TSXV:SLHG) is a healthcare services and technology company, striving to positively impact patient health outcomes. The Company operates a multi-state primary healthcare network in the United States comprised of physical practices providing a range of services ranging from primary care, subspecialty care, allied health care and laboratory/diagnostic testing. The company is focused on helping small independent practices transition from a traditional fee-for-service (FFS) model to value-based care (VBC) through tools such as proprietary technology, analytics data and infrastructure. In an FFS model, payers (commercial and government insurers) reimburse using an encounter-based approach. This emphasizes the volume of patients per day. In a VBC model, providers provide care that aims to keep patients healthy and minimize unnecessary healthcare expenditures that are not proven to maintain patient well-being. This emphasizes quality rather than volume. VBC will lead to better patient outcomes, reduced delivery costs and improved financial performance of existing practices.

Forward-looking statements

This press release may contain predictions, estimates or other information that may be considered forward-looking within the meaning of applicable securities laws. Although these forward-looking statements represent our current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our views only as of the date of this release. Please keep in mind that we do not undertake to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events. When used herein, words such as “look ahead”, “believe”, “continue”, “build” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements we have made herein are frequently discussed in our filings with securities regulators in Canada and the United States. , including the Securities and Exchange Commission, available at: www. and Canadian Securities Administrators, available at and on our website at

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Investor Relations:
Jackie Kelly
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