Skylight Health Group Inc, is pleased to announce the closing of Florida-based clinic – River City Medical Associates (“RCMA”), previously announced December 10, 2020. This acquisition expands the Company’s bricks and mortar and telemedicine services to 16 US states and its 2020 financial performance was $6 million in revenue and $1.35 million in EBITDA which is an improvement since the initial acquisition announcement.
RCMA has been operating an established and high growth multi-disciplinary network of clinics with 6 locations across Florida. Services to patients include primary care, urgent care, allied health & wellness, laboratory procedures, drive up COVID-19 testing, and preventive screenings, among others. Services provided by the Clinic are primarily reimbursed through insurance carriers including Medicare, Medicaid, and other commercial payors. Market Lead also leverages telemedicine as a delivery model for its existing patient base.
Skylight Health expects to see continued growth in patient registrations and visits as RCMA continues to thrive notwithstanding the challenges most clinics have faced due to the recent COVID-19 pandemic. Management will remain with RCMA to continue to accelerate growth across the state of Florida. RCMA will provide an established platform to continue to add new acquisitions in the state of Florida. Further, management will leverage their knowledge of developing a working and robust multi-disciplinary practice of allied health offerings to expand services within existing SHG clinics across other US markets. This immediately drives new service opportunities for the previous Skylight Health national base of 150,000 patients and add new insurable services revenues organically.
“We remain focused on establishing a strong national footprint to provide Americans with access to affordable and accessible quality care,” said Prad Sekar, co-founder and CEO of Skylight Health. “With the expansion into Florida by way of acquisition, we not only move into a new state, but add 6 new clinics with high-talent operators that have been innovative in their approach in bridging wellness and traditional healthcare together. Dr. Patel has a successful history in acquisition and organic growth. We welcome his expertise and market knowledge of Florida to drive future growth in the state.”
This acquisition supports and strengthens the 3-prong growth model which includes growth from the current infrastructure, new services and acquisitions. Skylight Health will pay a transaction value of US$4.4 million which is comprised of 66% cash all payable within 90 days of closing and 34% in common shares of the Company released quarterly with 20% of the share consideration payable on closing representing 374,167 shares issued at a price of $1.2785 and 5 installments quarterly for the remainder of the shares. Price of the remaining shares are calculated at the greater of (1) a consecutive 10-day average trading price of SHG preceding each issuance or (2) the lowest price permitted under the rules of the TSX Venture Exchange. In 2019, RCMA generated $5 million in revenue and EBITDA of $1.2 million, illustrating a strong organic improvement year over year. The shares issued as consideration on closing are legended and restricted from trading until June 4, 2021.
About Skylight Health Group
Skylight Health Group 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. With a patient roster of over 155,000 patients, the Company’s operations servicing 16 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: