NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, Dec. 11, 2020 /CNW/ - Skylight Health Group Inc (CSE: SHG) (OTCQX: SHGFF) ("Skylight" or the "Company") is pleased to announce that it has entered into an agreement with Echelon Capital Markets ("Echelon"), pursuant to which Echelon has agreed to purchase, on a bought deal basis, 12,000,000 common shares (each a "Common Share", collectively the "Common Shares") of the Company at a price of $1.00 per Common Share (the "Issue Price") for gross proceeds of approximately $12 million (the "Offering").
The Offering will be conducted by Echelon Capital Markets as sole bookrunner and co-lead underwriter, Beacon Securities and PI Financial as co-lead underwriters, together with a syndicate of underwriters (collectively, the "Underwriters"). The Company has granted the Underwriters an option to purchase up to an additional 15% of the Common Shares sold under the Offering, at the Issue Price. The Over-Allotment Option may be exercised in whole or in part to purchase Common Shares as determined by the Underwriters upon written notice to the Company at any time up to 30 days following the closing date of the Offering (the "Over-Allotment Option").
Skylight intends to use the proceeds of the Offering for strategic M&A activities and general corporate purposes.
In connection with the Offering the Underwriters will receive: (i) a cash fee equal to 6.0% of the gross proceeds of the Offering (including Common Shares sold pursuant to the exercise of the over-allotment option), subject to a 2.0% cash commission being payable on sales to members of the president's list (the "Presidents List Sales"); and (ii) that number of broker warrants equal to 6.0% of the Common Shares sold under the Offering (including Common Shares sold pursuant to the exercise of the over-allotment option), reduced to 4.0% in the case of the President's List Sales, each entitling the holder to acquire one Common Share for a period 24 months following the Closing at the Issue Price.