Skylight Health Group Inc. announced a private placement of 6,861 asset-backed convertible debenture at a price of CAD 1,000 per debenture for gross proceeds CAD 6,860,800 ($5,000,000) on October 21, 2022. The transaction will include participation from healthcare institutional investment firm. The company will issue debentures in two tranches of CAD 4,528,128 ($3,300,000) in its first tranche and CAD 2,332,672 ($1,630,000) in its second tranche. The debenture will bear interest rate of 0%. Each debenture shall be convertible into 1,111 common shares of the company at CAD 0.90. Upon issuance of the debenture, the 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 0.90 for a period of 5 years from the date of issuance of the debentures. The company has the option to repay the debt at any time at their election, without penalty, regardless of the share price. The convertible debenture and warrants are subject to final approval from the TSX Venture Exchange and all securities are subject to a standard four month plus one day hold period. Northland Capital Markets will act as placement agent and will receive 7% cash finderÆs fee in the transaction.
On the same date the company received CAD 4,528,128 in its first tranche.