Skylight Health Group Inc V.SLHG.H

Update from IR

[Finallytherock]

Update from IR Strengthened Business Model

Insurance Companies / Payors in the US are moving to value based models for providers where gross revenues under the new models can be upwards of $12K per patient per year compared to $150-$300 per patient per year under the current fee based models
Skylight acquires primary care fee based groups for 3-7x EBITDA and organically converts the groups to value based contracts by implementing technology and infrastructure
Skylight competitors that are currently acquiring already converted practices are paying on average more than 12x EBITDA with limited organic growth potential
Skylight Health remains in a unique position to recognize value in this shift in payment models with patients currently on its roster and as it quickly grows based on its disciplined M&A strategy

NASDAQ Strategy

Skylight Health remains committed to its plan to up-list to the NASDAQ
The first comment letter from the NASDAQ has been received, and the Company submitted its response yesterday
The Company is targeting a Q2 listing, pending approval from the NASDAQ and regulatory bodies, and does not anticipate any major roadblocks in achieving this target
Management believes an up-list will:
Provide additional opportunities to attract institutional and retail investors, allowing the Company to broaden its investor base in the United States and Internationally
Increase the visibility of the Company, its growth strategy, accomplishments, and results to date
Accelerate growth and create a more attractive platform for enhanced M&A capability
Increase liquidity of the Company’s common shares, raise the Company’s overall profile and ultimately enhance shareholder value
The company hosted a Special Meeting of Shareholders on February 22, 2021 where we received the required shareholder approval for the proposed option to consolidate shares up to 5:1 and will determine the appropriate action based on the best interest of shareholders, current share price, and NASDAQ listing requirements.
The company will announce any material changes to share structure as it becomes necessary

M&A Transactions

The Company announced last week the acquisition of 3 new practice groups, cumulatively generating over $10mm in revenue and positive EBITDA
Skylight is on target to close its undisclosed large acquisition announced in January this year by the end of March 2021
Following all transactions being closed, the Company will expect to generate $56mm in annual revenue
The M&A pipeline remains over $100mm in opportunities for 2021

Organizational Strategy

The Company recently made several key executive hires that bring experience to Skylight from some of the largest health systems in the US, including Cleveland Clinic, TriHealth and various NASDAQ and NYSE traded public companies
Skylight is committed to strengthening its infrastructure to support the organic growth and execution of its strategy
The Company has already recognized and acted on some near term improvement opportunities in the practices that have been acquired. This includes:
The launch of its remote patient monitoring program that can generate over $2,000 per patient per year that would qualify
Improvements by over 40% in reimbursements from payors in certain practices that have been acquired
The Company continues to invest in its technology infrastructure and has recently partnered with Amazon Web Services to strengthen its data repository and analytics capabilities

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