Skylight Health Looks To Raise Funds Via Preferred Share Yielding 9.25% Annually
Skylight Health (TSXV: SLHG) is evidently running out of funding options that the market will accept. The firm this morning announced that it intends to offer what is being referred to as Series A Cumulative Redeemable Perpetual Preferred Shares to the market in its latest financing.
The shares are being offered after the company “evaluated multiple leverage options that balance a healthy debt-to-equity ratio, while ensuring shareholder positions remain non-diluted.” The proposed shares are to offer dividends of 9.25%, payable monthly, that are redeemable by the company at a price of US$25.00 per share at the firms option any time on or after three years from closing.
With no market existing for the shares currently, the firm intends to list them on the Nasdaq under the symbol “SLHGP,” once approved by the regulator.
The size and terms of the offering have not yet been finalized.
Net proceeds from the offering are to be used for evaluating and completing possible acquisitions, establishing primary care and sub-specialty services in its existing facilities, capacity development, and for working capital.
The proposed offering with dividends comes despite the company still not generating positive operations, with the last quarter, ended June 30, seeing revenues of $10.5 million offset by operating expenses of $10.2 million, with a loss from operations of $3.5 million for the quarter. Year to date, the firm has been operationally cash flow negative to the tune of $4.3 million, with the company being supported by repeated financings.
Skylight Health last traded at $2.95 on the TSX Venture.
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