Skylight Health Group (TSXV: SHG) this morning announced that it intends to conduct a share consolidation as part of its previously announced Nasdaq listing application. The announcement was made concurrently this morning with the news that the company has closed its recently announced bought deal financing.
The share consolidation, also known as a reverse split, is set to take place at a rate of 5:1, with five pre-consolidation shares being exchanged for one post-consolidation share. The consolidation was previously approved by shareholders.
The share consolidation is to take place as of May 28, 2021. Following the completion of the reverse split, the company expects to have 38.1 million common shares outstanding.
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The company also announced this morning that it has closed its previously announced bought deal financing for total gross proceeds of $13.8 million, which includes the full exercise of the over-allotment option. The offering saw a total of 9.9 million shares issued at a price of $1.40 per common share.
Proceeds from the financing are to be used for growth initiatives, M&A, and general corporate purposes.
Skylight Health Group last traded at $1.36 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
