Skylight Health Suspends Series A Preferred Stock Cash Dividend

Rhea-AI Summary

Skylight Health Group Inc. (OTCQX:SLHGF) announced on March 16, 2023, that it has suspended the payment of dividends on its 9.25% Series A Cumulative Redeemable Perpetual Preferred Shares, originally scheduled for March 20, 2023. This decision aims to preserve capital and maintain flexibility during challenging global capital market conditions. The Board of Directors will evaluate the possibility of resuming the dividend in the future. The company focuses on transitioning patient care in the U.S. to a value-based model, seeking improved health outcomes and financial performance.

Positive

• The suspension of dividends is a strategic capital preservation move.
• Focus on transitioning to a value-based care model could enhance long-term financial performance.

Negative

• Cancellation of the dividend may signal financial struggles to investors.
• This move indicates a potentially challenging financial environment for the company.

TORONTO, March 16, 2023 (GLOBE NEWSWIRE) -- Skylight Health Group Inc. (TSXV:SLHG; OTCQX:SLHGF) (“Skylight Health” or the “Company”); a healthcare platform combining technology, and analytics focused on transitioning patients into value-based care to drive better health outcomes and experiences in the United States, today announced that its Board of Directors has suspended the payment of dividends on the Company’s 9.25% Series A Cumulative Redeemable Perpetual Preferred Shares (the “Series A Preferred Shares”) until further notice. The Series A Preferred Shares trade under the “SLHGP” stock ticker symbol.

The Company has decided to cancel the monthly dividend scheduled for payment on March 20, 2023, as previously announced on February 9, 2023. The Company believes cancelling the dividend is in the best interests of the Company and its stakeholders as a capital preservations strategy while maintaining flexibility during a critical phase as the global capital markets have significantly pulled back in recent months.

In accordance with the terms of the Series A Preferred Stock, dividends on the Series A Preferred Stock will accrue until such dividends are authorized or declared. The Board intends to revisit the resumption of its monthly dividend in the future when appropriate.

About Skylight Health Group 

Skylight Health Group (TSXV:SLHG: OTCQX:SLHGF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state primary care health network comprised of physical practices providing a range of services from primary care, sub-specialty, allied health, and laboratory/diagnostic testing. The Company is focused on helping small and independent practices shift from a traditional fee-for-service (FFS) model to value-based care (VBC) through tools including proprietary technology, data analytics and infrastructure. In an FFS model, payors (commercial and government insurers) reimburse on an encounter-based approach. This puts a focus on volume of patients per day. In a VBC model, the providers offer care that is aimed at keeping patients healthy and minimize unnecessary health expenditures that are not proven to maintain the patient’s well-being. This places an emphasis on quality over volume. VBC will lead to improved patient outcomes, reduced cost of delivery and drive stronger financial performance from existing practices.

Forward Looking Statements

This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent our current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this release. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as "look forward," "believe," "continue," "building," or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings we make with the Canadian and United States securities regulators, including the Securities and Exchange Commission, available at: www.sec.gov, and Canadian Securities Administrators, available at www.sedar.com, and on our website, at skylighthealthgroup.com.

For more information, please visit our website or contact:

Investor Relations:
Jackie Kelly
investors@skylighthealthgroup.com
416-301-2949  

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FAQ

What led to the suspension of dividends for SLHGF?

Skylight Health suspended dividends to preserve capital during tough market conditions.

When was the last dividend payment scheduled for SLHGF?

The last dividend payment was scheduled for March 20, 2023.

Will Skylight Health resume dividend payments?

The Board plans to revisit the dividend resumption when conditions are appropriate.

How does the value-based care model affect Skylight Health's business?

This model aims to improve patient outcomes and reduce healthcare costs, potentially boosting financial performance.