CB2 Insights Completes Acquisition of Cannabis Evaluation Clinics in Arizona and Colorado
TORONTO, April 10, 2019 (GLOBE NEWSWIRE) -- 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 the closing of its previously-announced acquisition of MedEval Clinic, LLC (“MedEval”), a multi-state medical cannabis clinic group with operations in Arizona and Colorado.
With the completion of this additional 2019 acquisition, CB2 continues to solidify our position as the leading group of multi-state medical cannabis evaluation and education centers in the US
said Prad Sekar, CEO, CB2 Insights.
We continue to focus on executing against our clinical consolidation strategy. These acquisitions not only bring meaningful lift to our top line revenue, they are key to growing our data pool as more and more stakeholders are looking for clinically-validated, evidence-based data to assess the true efficacy of cannabis treatment globally
Terms of the acquisition are unchanged from the previous announcement made on March 20, 2019. CB2 has acquired 100% of the assets of MedEval for a combination of cash and stock. Total consideration consisted of a cash payment of US$150,000 and 450,000 shares of CB2 Insights with a deemed value of US$225,000 or US$0.50 per share. Additionally, milestone incentives are in place relating to patient growth over the next 12 months and total up to US$300,000 in additional common shares of the Company, with all shares issued at the greater of US$0.50 or the 30-day volume weighted average price of CB2 shares. All share issuances are subject to a minimum hold period of four months plus 1 day from the date of each issuance.
As previously disclosed, MedEval LLC recorded approximately C$1 million in revenue in 2018 with a profit margin in line with the Company’s other clinical operations of approximately 20%. CB2 Insights will look to strengthen those metrics as the Company has successfully done with its first acquisition in 2017 of Canna Care Docs.
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.
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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 MedEval LLC including MedEval’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.