Skylight Health Group Inc. (NASDAQ: SLHG) is selling its legacy businesses Canna Care Docs and Relaxed Clarity to New Frontier Data for approximately $8.6 million. New Frontier will pay $4 million upfront with the remainder of the balance paid over three installments at 12 months, 18 months, and 24 months from the date of closing. The deal is expected to close before the end of November. Skylight said it expects to use the cash proceeds to further acquire primary care practices in its pipeline.
“This is an important move forward for all team members of Skylight Health Group,” said Prad Sekar, chief executive officer. “This transaction cements our full commitment towards setting aside medical cannabis and focusing on value-based care as we continue to acquire primary, urgent, and specialty practices in the United States.” Skylight said this asset sale will allow the company to focus fully on the traditional healthcare market and support of value-based primary care models.
The legacy businesses were engaged in clinical evaluations and recommendations for patients seeking medical cannabis for state-regulated conditions. Skylight said that cannabis patients will continue to receive services under the new management.
“New Frontier Data is excited to complete this transaction, a material milestone in our continued commitment to provide the most accurate and actionable intelligence on the global cannabis sector, in which today the majority of consumption stems from medical patients,” noted Giadha Aguirre de Carcer, New Frontier Data Founder & Executive Chair. “Deeper understanding of the nuanced differences between adult-use and medical consumption enables New Frontier Data to further optimize brand-to-consumer engagement, to continue driving industry maturation by setting higher data collection and reporting standards, and to strengthen a value-based medical cannabis space.”
New Frontier Data said it plans to apply its comprehensive industry research, technology, and consumer engagement capabilities to responsibly and transparently bring medical cannabis consumption and the growing medical cannabis patient community into focus. New Frontier Data said it will operate the newly acquired businesses under its new medical data division, CannaMedData. Cynthia Petrone-Hudock leads the new initiative as Interim CEO of CannaMedData. Petrone-Hudock comes to New Frontier Data as a 12+ year veteran of healthcare information technology, assisting healthcare systems in leveraging enabling technology to transform care.