The end of the line has finally come for Skylight Health (TSXV: SLHG), who announced late yesterday that it has entered into foreclosure and settlement transactions for its US operations.

The company has effectively enabled two secured lenders to enforce security on the firms US-based assets as a means of resolving outstanding debts. The decision to go down this path was reportedly made after “an extensive review of strategic alternatives.”

The first lender, Families-Backing-Families Credit Fund I, LP, or FLC, foreclosed on the firms equity interest in NeighborMD Partners of Florida, LLC, a primary care clinic chain of nine locations acquired by Skylight in May 2022 for US$8.0 million. At the time of acquisition the chain was said to have had trailing twelve month revenue of US$35 million.

MVC Technologies meanwhile, which was for a time known as CB2 Insights, was foreclosed on by Walleye Opportunities Master Fund. The assets largely consisted of tech related to the cannabis industry, which comprised the public vehicle before it went down the Skylight Health path.

READ: Skylight Health Admits It Can’t File Q4 Results, Expects To Be Halted

The foreclosure actions settled the US$11 million owed to FLC, and the US$4 million owed to Walleye, leaving the public vehicle with no remaining material operations.

The remaining US subsidiaries are to now formally be dissolved.

Creditors subordinate to Walleye and FLC meanwhile are not expected to receive any monetary recoveries. Its employees however are expected to see continued employment, while patients will continue to be served under the new ownership.

Skylight Health last traded at $0.02 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.