CB2 Insights Closes Oversubscribed Private Placement
Medical Cannabis Clinical Data Company Raises in Excess of C$5M led by Merida Capital Partners
TORONTO, Feb. 22, 2019 (GLOBE NEWSWIRE) — MVC Technologies Inc., operating as CB2 Insights (“CB2” or the “Company”), a leading data-driven company focused on bringing real-world evidence driven from the point-of-care to the medical cannabis community, is pleased to announce the completion of its non-brokered private placement for gross proceeds of C$5.74M. The raise was conducted concurrently with the Company’s final steps in its previously announced reverse takeover transaction (see previous releases for transaction details – January 23, 2019 and September 7, 2018). CB2 is pleased to announce that the private placement was oversubscribed from the original offering of C$5 million.
In the coming weeks we plan to deploy a portion of the proceeds from the financing to continue our acquisitions of US-based medical cannabis evaluation clinics.
Prad Sekar, Chief Executive Officer, CB2 Insights
With our background as clinical practice management operators, our team has proven our ability to increase the revenues and profitability of acquired clinics while reducing patient churn. The scale we are building is not simply for a roll-up; we are using the data we gather within our operations to bring real-world evidence to the medical cannabis space and to develop new predictive analytics tools for all industry stakeholders.
New York-based Merida Capital Partners (“Merida”), a private equity fund targeting fundamental growth drivers underpinning the rapid development of the global cannabis industry led the private placement round with C$3.68M. Having deployed more than $70 million of capital into the cannabis space, Merida holds a diverse portfolio of investments across the entire cannabis supply chain with a focus on medical cultivation, cultivation infrastructure, data and technology services and pharmaceutical development. Merida’s 23 investments include public companies KushCo Holdings Inc. (OTC.KSHB), GrowGeneration Corp. (OTC.GRWG) and Freedom Leaf Inc. (OTC.FRLF) and private companies Simplifya, New Frontier Data, Mainstem, and Emerald Scientific.
CB2 Insights fills a critical gap in the market, bringing highly controlled, clinically-validated Real World Evidence to the cannabis industry.
Mitch Baruchowitz, Managing Partner, Merida Capital Partners
We are pleased to add CB2 to our portfolio as we continue to support game-changing tools that engage the medical community while giving doctors and the medical community at large the data they need to confidently recommend cannabis-based medicines.
Mr. Sekar continued, “Merida’s deep understanding of the cannabis industry, both core and ancillary, makes them an ideal strategic partner for our company moving forward. Attracting a lead order from such a strong presence in the market provides further validation of our vision and our ability to execute on that vision as we enter this pivotal chapter in CB2 Insights’ history.”
Proceeds from the Private Placement will be used to accelerate an aggressive clinical M&A and consolidation strategy which CB2 Insights will execute over the course of the current and next fiscal year.
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 clinical 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. To date, the Company has collected data from more than 300,000 patient interactions.