Skylight Health Group Inc. announced a non-brokered private placement transaction of convertible debenture units at CAD 1,000 per debenture unit for total gross proceeds of up to CAD 2 million on August 8, 2022. Each debenture shall be in the principal amount of CAD 1,000 and shall bear interest at the rate of 8% per annum, paid quarterly in shares, and shall have a maturity date of February 15, 2025. Each debenture shall be convertible into 1,111 common shares of the company at CAD 0.90. Upon issuance of the debenture a holder shall also receive 1,111 share purchase warrants of the company. Each warrant entitles the holder to purchase one common share at a price of CAD 1.35 per share for a period 24 months from the date of issuance of the debentures provided that if after the date that is four months and one day after the issuance of the Warrants, the common shares trade at a price of at least CAD 1.60 for 10 consecutive trading days on the company's primary stock exchange, the company can deliver a notice and accelerate the expiry date of the warrants to the date that is 30 days after the date on which such notice of acceleration is provided. If the common shares trade at CAD 2.00 for 10 consecutive trading day, the company may, at its option, convert the debenture to shares at the same conversion terms of CAD 0.90, upon receipt of a conversion notice. The closing of the transaction is expected to occur on or about August 15, 2022 and is subject to regulatory approvals, including approval of the applicable Canadian securities regulatory authorities and the TSXV.

On the same day the company raised CAD 1.5 million in its first tranche.