CB2 Insights Signs Agreement to Acquire Medical Cannabis Clinic Group in Colorado and Arizona
March 20 2019 - 7:00AM
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
announced it has entered into a binding agreement to acquire
MedEval Clinic LLC, a medical cannabis evaluation and education
center group with multiple locations in Colorado and Arizona.
This is the Company’s second clinical acquisition, following its
2017 purchase of Massachusetts-based Canna Care Docs, the largest
multi-state cannabis clinic group in the US.
MedEval operates two clinics within Colorado including Colorado
Springs and Centennial as well as one clinic in Phoenix,
Arizona. The group was established in 2014 and has provided
cannabis evaluation and educational services to tens of thousands
of patients since inception.
In 2018, MedEval recorded approximately C$1.0M in revenue.
This acquisition adds an additional two states to the Company’s
current operations now totalling 14 jurisdictions served and is
also expected to increase patient volumes by at least 10%.
“As we continue to bolster our leadership in controlled, uniform
data collection related to medical cannabis therapy, this
acquisition not only increases our data pool but has an accretive
lift to our financial performance,” said Prad Sekar, CEO, CB2
Insights. “Colorado plays a vital role in medical cannabis
data, representing a very mature recreational market which also
sees medical cannabis patient counts continue to grow. This
has since proved that self-medicating is not the path taken by the
vast number of patients suffering from debilitating ailments.
Additionally, Arizona’s untapped market presents a number of
opportunities for our Company, as the state is primed for growth in
the medical cannabis space.”
CB2 Insights focuses on providing Real-World Evidence (RWE) and
clinically-driven data analysis on the efficacy of cannabinoid
therapy. Data is controlled and ingested through the
Company’s clinical operations and proprietary data collection
software. Prior to this acquisition, CB2 Insights provided
medical evaluations to approximately 65,000 patients
annually.
CB2 Insights has already demonstrated success in growing its
clinical operations. Following its 2017 acquisition of Canna
Care Docs, the Company improved the group’s revenue and patient
counts by more than 20% and grew profits by more than 125%. The
team looks forward to bringing similar improvements to the MedEval
clinical organization.
CB2 Insights acquired MedEval for a combination of cash and
stock. Additional terms of the agreement have not been
disclosed.
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 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.
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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