TORONTO, April 10, 2019 (GLOBE NEWSWIRE) -- PRESS RELEASE -- CB2 Insights, a provider of predictive analytics tools, data-driven software and comprehensive services across the cannabis value chain, has announced the closing of its previously-announced acquisition of MedEval Clinic, LLC, 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 percent 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 percent. CB2 Insights will look to strengthen those metrics as the company has successfully done with its first acquisition in 2017 of Canna Care Docs.
