CB2 Insights Acquires Multi-Location Medical Cannabis Clinic Group, Relaxed Clarity
April 04 2019 - 8:39AM
CB2 Insights (“CB2” or the “Company”) (CSE: CBII), a leading
provider of predictive analytics tools, data-driven software and
comprehensive services across the cannabis value chain, today made
its second acquisition announcement in 2019 as it has acquired the
assets of Colorado-based medical cannabis clinic group Rae of
Sunshine Health Services (“ROSH”) LLC, operating as “Relaxed
Clarity”, effective immediately. This follows the 2017
acquisition of Massachusetts-based Canna Care Docs, the largest
multi-state cannabis clinic group in the US and the March 20, 2019
announcement of the agreement to acquire Arizona and Colorado-based
MedEval LLC. CB2 continues to acquire clinics as part of its
strategy to standardize the capture of clinically-validated patient
efficacy data. This new acquisition will help expedite that process
and will not only improve CB2’s financial metrics but advance the
industry at-large.
Relaxed Clarity operates four clinics in Colorado including
Denver, Colorado Springs, Pueblo and Broomfield. The group
was established in 2009 and provides comprehensive medical cannabis
evaluations and educational support to approximately 15,000
patients each year. In 2018, Relaxed Clarity recorded
approximately US$1.1 million in revenue.
Terms of the acquisition
Under the terms of the acquisition, CB2 has acquired 100% of the
assets of each of ROSH and its subsidiaries for a combination of
cash and stock. Total consideration consisted of a cash
payment of US$200,000 and issuance of 500,000 common shares of the
Company. Share consideration was negotiated by the parties
based on the Company’s most recent financing price, led by Merida
Capital. Additionally, milestone incentive payments are in
place relating to patient growth over the next 12 months and total
up to US$100,000 in cash and up to a value of US$300,000 in common
shares of the Company.
Subsequent share issuances will be based on the 30-day volume
weighted average price of the Company’s shares prior to the date of
issuance and all shares will be subject to a minimum hold period of
four months plus 1 day from the date of each issuance.
Update on 2019 Revenue and Patient
Trajectory
“Based on 2018 revenue results of this acquisition, CB2 Insights
is currently on track to achieve at least CA$12.2 million in
revenue for 2019,” said Prad Sekar, CEO, CB2 Insights. “We have an
active pipeline of acquisition targets and along with organic
growth within our existing operations, we anticipate achieving our
stated 2019 revenue goal of more than CA$20 million, for
year-over-year growth of more than 80% compared to 2018.”
At the close of 2018, CB2 Insights was collecting
clinically-validated evaluation data through its business units of
approximately 65,000 patients annually. As a result of this
announcement, combined with the pending acquisition of MedEval LLC,
the Company projects its annualized patient count to increase to
approximately 80,000 patient evaluations on an annualized
basis.
About CB2 Insights
CB2 Insights has a mission to mainstream medical cannabis into
traditional healthcare. We do so by gathering data and
creating objective real-world evidence through our proprietary
software and service brands. Using clinical management and
data collection software at the point-of-care, CB2 Insights and its
group of sub-brands has become a leading force behind bringing
traditional healthcare protocols to the rapidly evolving global
cannabis industry.
For more information please visit www.cb2insights.com.
Forward Looking Statements
Statements in this news release that are forward-looking
statements are subject to various risks and uncertainties
concerning the specific factors disclosed here and elsewhere in
CB2’s filings with Canadian securities regulators. When used in
this news release, words such as "will, could, plan, estimate,
expect, intend, may, potential, believe, should," and similar
expressions, are forward-looking statements.
Forward-looking statements may include, without limitation,
statements regarding results following the acquisition of Relaxed
Clarity including Relaxed Clarity’s expected revenue, contribution
to financial performance and patient evaluations, and the
opportunity to provide services and software to the U.S. cannabis
industry.
Although CB2 has attempted to identify important factors that
could cause actual results, performance or achievements to differ
materially from those contained in the forward-looking statements,
there can be other factors that cause results, performance or
achievements not to be as anticipated, estimated or intended,
including, but not limited to: dependence on obtaining regulatory
approvals; investing in target companies or projects which have
limited or no operating history and are subject to inconsistent
legislation and regulation; change in laws; reliance on management;
requirements for additional financing; competition; hindering
market growth and state adoption due to inconsistent public opinion
and perception of the medical-use and recreational-use marijuana
industry and; regulatory or political change.
There can be no assurance that such information will prove to be
accurate or that management's expectations or estimates of future
developments, circumstances or results will materialize. As a
result of these risks and uncertainties, the results or events
predicted in these forward-looking statements may differ materially
from actual results or events.
Accordingly, readers should not place undue reliance on
forward-looking statements. The forward-looking statements in this
news release are made as of the date of this release. CB2 disclaims
any intention or obligation to update or revise such information,
except as required by applicable law, and CB2 does not assume any
liability for disclosure relating to any other company mentioned
herein.
No securities regulator or exchange has reviewed,
approved, disapproved, or accepts responsibility for the content of
this news release.
Primary Contact
Dan Thompson
Chief Marketing Officer
Dan.thompson@cb2insights.com
1.416.670.9316
For Investor Inquiries
Sophic Capital
1.647.362.8286
investors@cb2insights.com
For Media Inquiries:
KCSA Strategic Communications
cb2@kcsa.com
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