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, clarifies the terms with respect to its pending acquisition of medical cannabis evaluation clinic group MedEval LLC. Further to CB2’s news release of March 20, 2019, CB2 announces it has entered into a binding letter of intent to acquire the assets of MedEval LLC. Subject to satisfactory due diligence and other customary closing conditions, CB2 Insights will acquire MedEval for a total consideration consisting of US$150,000 in cash and 450,000 shares of CB2 with a deemed value of US$225,000. Additional milestone incentives are in place related to upside patient growth valued at up to US$300,000 in additional share value with all shares valued at the greater of US$0.50 or the 30-day volume weighted average price of CB2 shares.
As previously disclosed, MedEval LLC recorded approximately C$1M in revenue. CB2 Insights anticipates that the profit margin associated with that revenue will be in line with the Company’s other clinical operations of approximately 20%.