TORONTO, June 25, 2019 (GLOBE NEWSWIRE) — CB2 Insights (CSE:CBII; OTCQB: CBIIF) (“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, today announced it will take over patient care for one of New Jersey’s largest medical cannabis evaluation and education clinic groups on July 1, 2019. New Jersey Alternative Medicine (“NJAM”) will transfer all patient care to CB2 Insights under a performance-based agreement. CB2 will operate within the State of New Jersey under the Company’s Canna Care Docs brand, the largest multi-state medical cannabis clinic operator in the US. The acquisition of assets of NJAM will require no cash or stock payments upon closing.
“New Jersey is an exciting market for CB2; with over 50,000 active patients and growing across the state, and further advancements to the medical cannabis program to expand on indications and patient access, NJAM, who has already captured care of more than 25% of the market, will provide CB2 with a solid base of patients and revenue to capitalize on the growth this state will continue to see,” said Prad Sekar, CEO, CB2 Insights. “We continue to expand on our commitment to grow our market share in the US, through M&A and organic growth activities, while ensuring that growth provides immediate revenue recognition and a drive to consolidated profitability. By acquiring the assets of NJAM and assuming their patient care, we will become one of the dominant players in the state of New Jersey and provide shareholders with near term revenue growth and longer-term aggregate data growth by adding an additional 15,000 patients to our registry.”
New Jersey Alternative Medicine currently operates 6 clinics throughout the state, servicing over 15,000 patients. The decision to transition care to CB2 Insights comes at a time where the patients in New Jersey continue to seek out a standardized quality of care with an emphasis on education and support, all of which continue to remain the focus of the Company and the strength that it brings to each market it serves with an established and proven clinical operating model. CB2 plans to increase annual patient volumes through aggressive marketing programs and enhanced patient care, in line with each of its 3 clinical brands.
This announcement marks entry into the third new state for the Company since April 2019, following successful acquisitions of Relaxed Clarity and MedEval Clinics in Colorado and Arizona. As of July 1, the Company will operate nearly 40 medical cannabis evaluation and education centres across the US and provide telemedicine services to patients in Maine and New York.
No cash or other consideration will be payable at the time of closing. Over the next 13 months, CB2 Insights will pay a combination of cash and/or shares based on achievement of retained patient volumes where stock will be calculated at the 10-day VWAP at the time of issuance and where the first stock award will not be granted until a minimum of 90 days following the closing of the agreement. All securities issues will have a 4-month hold from the date of issuance. Also, CB2 Insights will not assume any of NJAM’s liabilities including all indebtedness.