First acquisition post-RTO to consolidate the US medical cannabis clinical market; increases revenues, patient count and jurisdictions served
TORONTO, March 20, 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 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. 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.
Prad Sekar, CEO, CB2 Insights
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.