New Frontier Data To Buy Medical Cannabis Businesses Of Skylight Health Group For $8.63M In Cash
New Frontier Data confirmed Monday that it has executed an asset purchase agreement to acquire Skylight Health Group Inc’s (TSXV: SLHG) (NASDAQ: SLHG) medical cannabis certification businesses - Canna Care Docs and Relaxed Clarity for $8.63 million in cash.
The total consideration will consist of cash on closing of $4 million and the remainder of the balance paid over three installments at 12 months, 18 months and 24 months from the date of closing. Skylight noted it plans 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.
“This is an important move forward for all team members of Skylight Health Group,” said Prad Sekar, CEO of Skylight Health. “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 Washington-based New Frontier Data will operate the newly acquired businesses under its new medical data division, CannaMedData. Cynthia Petrone-Hudock leads the new initiative as interim CEO of CannaMedData. The company intends to apply its comprehensive industry research, technology and consumer engagement capabilities to responsibly and transparently bring medical cannabis consumption and the growing medical cannabis patient community into focus.
“While now focused on people, process and technology stabilization and streamlining, this transition period should be short, allowing us to quickly turn our efforts toward growth and innovation, with the ultimate strategic goal to optimize and maximize capture of cannabis patient data,” said Petrone-Hudock. “This new and first-of-its-kind aggregate view of medical cannabis consumption enhances our data, research, and analytics, laying the foundation for mainstream medicine to embrace value-based medical cannabis care in the future.”
Price Action
Skylight Health Group’s shares were trading 4.61% lower at $2.9 per share at the time of writing Monday late morning.
Photo: Courtesy of Chris Liverani on Unsplash
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