- CB2 Insights, provides healthcare services through brick and mortar clinics and a virtual telemedicine platform to a network of over 100,000 patients across 12 States;
- The Company recently announced profitability in Q2 2020, free cash flow and an oversubscribed private placement of $CAD 5.13 million;
- The Company generated $CAD 14 million in 12-month trailing revenue from insurable and non-insurable services.
TORONTO, ON – October 6, 2020 – CB2 Insights (CSE:CBII; OTCQB: CBIIF) (“CB2” or the “Company”), one of the largest integrative healthcare systems in the United States, is pleased to provide the following corporate update and outlook on growth for 2020 and 2021. CB2 Insights Inc. is a US-focused, healthcare services and technology company. The Company owns and operates a proprietary virtual telehealth platform and a network of over 30 medical clinics across 12 states in the US, providing integrative, primary and urgent care services since 2017 to over 100,000 patients annually.
The Company is positioning itself to become one of the largest national networks of health centers in the US powered by technology and telemedicine delivery mechanisms. Its fast-growing customer base will aim to reach millions in the coming years as they continue to expand on services for both insured and uninsured segments of the US population. CB2’s revenue stream will be driven by membership subscription revenue and insurable services through traditional insurance payors, most notably Medicare and Medicaid, in both traditional bricks-and mortar clinics, and a proprietary virtual telemedicine offering.
CB2 is led by a strong management team with over 50 years of collective experience in clinical practice management, technology and primary care in both the Canadian and US healthcare market. Further, it is well positioned to execute against its strategy. In Q2 2020, it announced positive EBITDA and free cash flow for the very first time – a trend that has continued into Q3 2020. It also recently strengthened its balance sheet with a $5.13 million upsized and oversubscribed private placement, bringing total cash in the company to over $6 million.
The Company’s growth will be focused on a 3-pronged strategic plan generating strong results both organically and through targeted, accretive M&A activity.
- Growth from the Current Infrastructure: Patients within the current roster will be offered a full suite of primary care and urgent care services. The Company currently generates an annual average of $150 per patient based on its historical service offering. As primary care services roll-out strategically over the next 12 months via its bricks and mortar clinics and telemedicine platform, the Company expects to grow the per-patient revenue per year; with minimal (or no) cost to the patient directly but rather billed through insurance providers.
- Growth from New Services: The Company has launched one of the most affordable healthcare solutions in the US to support the over 40 million Americans without access to services due to the high-cost of delivery of such services. At USD $200 a year, the Company is offering a suite of urgent healthcare services delivered solely through its telemedicine platform, to support patients that have limited options available today. This is a highly profitable means of healthcare delivery and the Company expects significant uptake of its subscription services over the next 12 months.
- Growth from Acquisitions: Based on its historical success of clinical acquisitions, the Company is targeting 8-10 acquisitions over the next 12 months which will lead to growth in patient count, revenue & profitability and new market expansion. The Company has developed a strong pipeline of acquisition targets, including several that it anticipates closing on within 2020, that should lead to strong revenue and profitability growth. Further, the Company expects to bolster organic growth in each of the acquisition targets through the delivery of its telehealth platform, introduction of complementary billable services, and improvement to the cost structure through technology, workflow optimization and centralization of key functions.
Prad Sekar, Chief Executive Officer of CB2 commented “This is the right time for this aggressive growth strategy. We have the management expertise, capital and infrastructure to execute against our 3-pronged plan. In the coming months, shareholders can expect to see continued news flow to support our growth model. Over the last 12 months, we have focused on successfully reaching profitability. We now fully anticipate such growth to accelerate as we move toward this exciting future.”
