Hey pride hey how are you i’m doing fantastic how are you happy new year happy new year my friend you got some big news eh we have big news holy smokes man so we’re already live uh we already got 74 people watching so everyone’s excited to hear from you and man wow like i don’t even know where to start okay so there’s lots of news before we go into the big news

Of today can we go through some of the news that you’ve already broke in january because it’s been like four press releases right yeah let’s go over all of them tsx venture listing uh acquisitions uh you know i’ll let you speak on it and then we’ll get into the news today which is just a huge acquisition which i love by the way okay yeah um so let’s talk about

Them so yes uh i’ll call it end of december sort of ended the year with the closing of tennessee which was our you know uh we announced five transactions last year um and three were set to close by the end of last year and into january so tennessee and um colorado apex uh have now closed those are the four out of the five have now been completed and that was

The last press release we put in january as well and so we’re committing to our timelines we’re right on target and our fifth transaction which is a florida transactions anticipated to close before the end of this month and so that’ll take us through the five that we announced last year which is you know incrementally taking us to about a 26 million dollar revenue

Run rate and about a two to three million dollar positive ebitda run rate um and then of course in the back of that uh we were working on the tsx venture we announced our early approval in december um and then finally got our approval the list and went live on wednesday and so we’re pretty excited about that i’ve seen some good reaction to it of course and we’re

Just really excited that we can bring some broader liquidity um expand the story to more institutional investors um and really kind of strengthen you know the credibility of the company as well um so all positive momentum things ending december moving into january i don’t think we had any days off our team was working right through the holidays and so um you

Know kudos to them and um yeah i mean look the the newest announcement is something we’ve had in the works for the last couple of months you know obviously we can’t talk about it publicly but we’ve hinted at you know eight figure transactions and and then and beauty is this is one of many in our pipeline and uh i’m just really happy we can now come out with the

News you know we can start to talk about uh opportunities like this that we have moving forward um but yeah happy to talk about this news release as well but we’re super excited just in how so the execution has been coming sort of month on month and obviously we have a lot more planned as we move into 2021. this is incredible when we talked last we talked about

Having a huge 2021 we talked about potentially having 100 million dollars in revenues that you could acquire and you guys are already halfway there with this acquisition this is a 20 million dollar acquisition right yeah congratulations it’s actually over 20 million but uh yeah so well we’ll keep it at 20 million you know the other thing i love about this deal

And i read through the whole press release with with the people that are watching we got 75 people watching if you guys have any questions please drop them in the chat um i went through the entire press release and the thing i love about this acquisition is you paid 40 in cash over 5 million cash so you’re putting some skin in the game it’s not just a stock play

Where you can create a lot of dilution in your stock where i’ve seen a lot of other companies do that and that can become really painful at times and i love the fact that there’s a portion of cash and there’s a portion of stock with the option to pay off payoff it’s actually a portion of debt so we never took we didn’t give any stock on this okay it’s dead yeah


There’s there’s there’s no so it’s a seller’s note it’s a three-year seller’s note okay okay perfect one right um it’s interest only for the first year and it’s an open note so we can pay it back anytime we want to there’s no penalties and once we pay it off there’s no kind of incentive you know stock kickers or warrant kickers or any of that’s a very clean deal

Even better allows us to preserve the cash obviously for future acquisitions of this kind of transaction so we can take a dollar much further now on equities so it’s far less diluted for shareholders um and then from a debt perspective i mean this this deal takes us to another five to six million dollar positive ebitda multiple uh sorry run rate so i mean again

We have cash flow to be able to finance debts but also use that cash for further acquisitions and so it’s okay to have i think you know from a leverage perspective we’ll be mindful but i think this kind of structure allows us a lot more flexibility for deployment of capital in a more creative way and bring on more deals absolutely so you did this without actually

Diluting your shares at all i’m you know personally i’m not i’m not a fan of using stock for acquisitions of these types i mean larger sizes you know we’ll look into that but you know i i don’t like the overhang and at some point it always comes to the company and look you you raise equity with strong long-term investors you use that money in an intelligent

Way you put the money to use in a way that can drive far more returns you know right now we’re in about a one to three return so every dollar we spend we get three back and that’s just without any organic growth and that three can grow to five or six or ten by organic growth and so the value to shareholders is far better in this model and you know we’re staying

Disciplined we’re only buying practices that fit the model um we’re staying disciplined to the ebitda multiples that we want to try and attain and that’s what i’m really proud of our team to be able to find these deals and bring them to the you know bring them to the point of closing and what’s your share structure at right now where what are you guys at fully

Deluded so everybody knows so we’re about 200 million shares fully deluded um 172 million shares issued now standing those after the last spot deal was completed and again same thing last two bought deals you know very particular we are not doing warrants you know it’s an equity-only offering um we take what we need i mean we had over 25 million in demand on the

Last round and we stuck to 12 because we know we know what the cash is going to be used for and we know where it’s going to get us to and so um it allows us far more you know runway to keep you know being opportunistic at better prices and far less diluted prices to shareholders what would you be able to speak on your cash holdings right now in your treasury so

Everybody knows kind of how much you’re sitting on yeah so at uh at the close of the financing we’re roughly at about 20 21 million we had committed acquisitions of course but the close of this fight this acquisition though will be left with about 12 million so we still have a fair amount of dry powder here to go in and look at one or two more of these types of

Transactions which is what we intend to do through 2021 um so we are pretty confident that we’re going to be bringing a couple more of these deals for sure this year and some smaller ones along the way but uh but certainly we like we like this structure we like the infrastructure these deals bring we like the um the value and the learnings we get from an organization

Like this and so we’re very excited about this type of model the sweet spot for us is in this 5 to 20 million dollar range we certainly have larger deals in the pipeline but you know of course those take you know more time and effort and of course there’s larger multiples applied to those generally as well so we’re you know we’re going to be very busy that’s for

Sure uh with the ones we have with the ones we’re closing and then what certainly with the ones that we want to bring forward into the into the loi stage and then to closing so you guys are really growing you guys the stock has grown and uh when we started talking i think it was at 65 cents today we’re around 1.50 so congratulations on the price appreciation of

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The stock congratulations to members who have been winning i think this is a great story in fact um we listed you as one of our top picks for january and you’ve already been doing quite well obviously in the first week and we listed you as one of our top 10 picks for all of 2021 because i see the future potential here i see what you’re doing and i love the fact

When i speak with you you’re so honest and you’re like yeah you know we’ve got 12 million and we’re going to use it to acquire more business i love that you’re not interested in keeping that in the bank you want to use that to go and acquire more growth is that the plan right now yeah i mean we have organic growth i mean don’t forget the fact that our model is to

Take you know uh a patient unit economic from 150 or 200 dollars based on a service rendered one to two times a year bring more services that are more value added for the patient but then in virtue of that have that multiplied by five or six or ten times from a fee from a billing perspective and so you know we’re driving a tremendous amount of organic growth as

Part of our model in the coming years with each of the acquisitions we make but from an m a perspective we have no need for cash operationally we’re not burning any money and so you know we can keep that cash for growth and like we said there’s a huge market opportunity with a large percentage of the market that’s still right for the taking and i think skylet’s

In a perfect position and we’re proving it out we’re gonna make great partners for these clinics and and we look forward to seeing more deal flow come so we’ll be opportunistic we have other conversations around other financing strategies as well and so with the greater strength in cash greater strength than in a balance sheet and a profit and loss position you

Know we’re we only open up more options for the company to be to be more active on the m a front so we will be very active this year on the m a front now we found quite a few companies early over the last couple years that have gone in the same direction as you and then they made an application to the nasdaq toronto stock exchange is that something you’re going

To be looking at in 2021 because it seems like you guys are on that trajectory and it seems like a perfect fit because this is a company that’s doing a lot of business in america imagine having a nasdaq listing or a new york stock exchange listing i think it’d be a game changer for you guys is that something that you thought about we’re getting more exposure um

So it’s certainly in the cards um we’ve been talking about it um what we’re what we’re really liking though at the moment is just the broadened exposure we’re getting with institutional markets in the us and so we’ve now had more inbound as well as some outbound meetings set up with you know various banking institutions we’ve met with research desks we met with

The sales desks we’ve met with the bankers and just starting to get a feel for what the market is going to be like we’ve actually met with a few you know institutional accounts reception’s been great so i think as we continue to demonstrate our valuation grows the market cap grows the type of funds that can participate in our story grows um and that just means

That you know there’s more opportunities to find you know continued long-term shareholders but from an exchange perspective certainly we want to we want to reflect the exchange that can attract the right type of long-term investors that will give us the runway because like i said this is not a 2021 story this is just a 2021 beginning i mean we started at the end

Of 2020 with this m a play and we’re just going into 21 and we’re already showing how we can demonstrate accretive acquisitions and there’s a lot of these deals so i foresee us being quite busy in this front for you know at least the next couple of years or more while organic growth continues to expand so um for sure i think you know bigger market um would be in

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The cards in the future one of the things that’s really impressive is the liquidity you guys got a lot of liquidity right now yeah incredible right like and again i think the venture is a big part of that too right is graduating to a to a more visible board makes makes the stock easier for people to participate and now we have a lot of people sit on the sidelines

But can’t participate because of the exchange that we trade on and so i think all this is part of giving existing shareholders a chance to get more liquidity in the stock by having more shareholders join join the story so i know you’re a busy guy i’m not going to keep you all day you got so many things on the go if there was one thing you wanted shareholders to

Know about skylight health right now what would it be obviously you’ve got four press releases it’s only january 7th um what else can you tell a shareholder that’s wondering what the next steps are for scotland health um i mean look we’ve announced a transformative acquisition um we’re gonna be spending some time ingesting this acquisition but we are actively

Working on a pipeline down the road and i’m not sure if you saw the wednesday press release but both cash and myself the two founders put ourselves on a no sell for six months not that we’re selling we’ve never sold we’re not going to but just to give optics and confidence to the market to know there is a plan in place that we are so confident that we’ll put our

Money where our mouth is and we’ll show shareholders that you know as significant shareholders ourselves we believe in the next six months to one year to two to five years of the story and uh you know i’m i’m as excited as i was to get to this point to announce this transformative acquisition i’m just more excited to continue to be able to demonstrate that value

Of that pipeline as we keep putting out this kind of news flow so you know stay tuned is all i can say because this this is just the beginning there there really is more to come yeah and it’s funny because every time you’re on our show there’s just these enormous news releases i’ve i’ve never really seen anything like it to be quite frank it’s really impressive

And if an investor or shareholder or joint venture partner uh institution wants to get in contact with you pratt what’s the best way for them to reach you yeah so investors at is the easiest way i mean you can also go to the website there’s an investor section and they can reach out um and we’re pretty responsive

And our um our team will we’ll be back in touch pretty quickly so any questions that’s the easiest and fastest way to get through brad continue the great work you’re doing our shareholders are super excited about skylight health everybody’s up everybody’s up already so uh congratulations on all your success so far i know that you’re going to have a lot more and

We’d love to invite you back on our show whenever you have any big breaking news love to get you back on i’m sure we’ll have you on soon and continue all your hard work and dedication to your shareholders it shows and i know our community is absolutely in love with skylight health group in fact i have a friend of mine on my son’s soccer team and he told me his

Son is buying skylight health group he lives in alberta and and i was like oh my goodness i’m interviewing this so late uh this was last night i’m like i’m interviewing the ceo tomorrow and he’s like i’ll be watching i’ll get my son to watch like people are starting to talk about skylight health group so that’s amazing that’s me that’s all we want we want the

Story to be heard and we’ll do our job we’ll keep executing and rich thank you so much i appreciate it thank you brad have a great day thank you guys for watching have a great day skylight health group shg in canada s h g f f in america if you’re not winning you’re not watching we brought you skylight health group first and thank you prat the ceo for your time

Have a great day thank you take care thank you for watching everybody we’ll see you guys soon

Transcribed from video
SKYLIGHT HEALTH TO ACQUIRE US CLINIC GROUP with over $20 million in Revenue By RICH TV LIVEliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-01-07T163551+0000endTimestamp2021-01-07T171253+0000}

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