- CB2 Insights’ Q3 2019 preliminary unaudited revenue saw a sequential growth of approximately 29% compared to the previous quarter
- Company’s Q3 preliminary Adjusted-EBITDA loss was significantly reduced by 64% compared to the previous quarter
- After three acquisitions in the year, CB2 Insights now owns and operates one of the the largest networks of medical cannabis clinics in the U.S with a patient registry of 100,000 unique patients annually
- Earnings results are set to be released with a subsequent conference call on November 8, 2019 at 9:00 am Eastern Time
TORONTO, ON – October 31, 2019 – 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, announced preliminary unaudited revenue of approximately $4.2 million1 for the three months ended September 30, 2019, representing a 29% growth from the previous quarter. The company also decreased its third quarter adjusted-EBITDA loss by approximately 64% from the previous quarter and saw its first ever month of positive adjusted-EBITDA in the month of August. All figures are reported in Canadian dollars, unless otherwise indicated.
The Company’s achievement in the first nine months of 2019 was, in large part, due to the successful strategic acquisitions of Relaxed Clarity, MedEval Clinics LLC and New Jersey Alternative Medicine (now operating as Canna Care Docs New Jersey). The third quarter of 2019 was the first full reporting period that included the contributions of all three clinical businesses. CB2 now successfully owns and operates one of the largest networks of medical cannabis clinics across the US with a patient registry of 100,000 unique visitors annually. As the team delivers on its efficiency goals and begins to recognize increases in revenue from its technology, data and research services business units, CB2 will look to report full profitability in the coming quarters.
“The continued growth in demand in the market for solutions related to clinically-driven product research has allowed CB2 to start leveraging on our data, technology and CRO capabilities to generate new revenue streams to our already profitable clinical operations in the U.S.,” said Prad Sekar, CEO of CB2 Insights. “We believe we have now arrived at an inflection point in our business and the numbers we are reporting are starting to prove out our multi-dimensional business model. As a team, we will continue to deliver organic growth of our U.S clinical operations, growth in clinical trial and data partnerships, and expand into accretive emerging markets. The Company is now well positioned for continued international growth and ultimately, company-wide profitability.”
CB2 plans to release its results for the three and nine months ended September 30, 2019 on November 8, 2019, with a conference call to discuss its financial results and provide an update on its business operations at 9:00 am Eastern Time. The call will be hosted by Prad Sekar, CEO of CB2 Insights and Raheel Lalani, VP, Finance of CB2 Insights.
Conference Call Details (phone audio only)
|Date:||Friday, November 8, 2019|
|Time:||9:00 a.m. (Eastern Time)|
|US/Canada Toll Free Dial In:||1-800-319-4610|
|Toronto Local Dial In:||1-416-915-3239|
|International Dial In:||1-604-638-5340|
|Call Name:||CB2 Insights Earnings Call|
1.The financial information presented in this press release is based on preliminary unaudited financial statements prepared by management, for the third quarter ended September 30, 2019, and is fully qualified by the section in this press release entitled ‘Disclaimer Regarding Financial Information ‘.
This news release makes reference to certain non-IFRS measures, including certain industry metrics. These metrics and measures are not recognized measures under IFRS, do not have meanings prescribed under IFRS and are as a result unlikely to be comparable to similar measures presented by other companies. These measures are provided as information complimentary to those IFRS measures by providing a further understanding of our operating results from the perspective of management. As such, these measures should not be considered in isolation or in lieu of review of our financial information reported under IFRS. This news release uses non-IFRS measures including “EBITDA”, “adjusted EBITDA”. EBITDA and adjusted EBITDA are commonly used operating measures in the industry but may be calculated differently compared to other companies in the industry. These non-IFRS measures, including the industry measures, are used to provide investors with supplementary measures of our operating performance that may not otherwise be apparent when relying solely on IFRS metrics.