- Texas-based Maverick County Medical has been providing Primary Care Services to over 10,300 patients in Eagle Pass and surrounding regions.
- In 2019, Maverick County Medical generated CAD 1.6 million in revenues and CAD 0.29 million in net income.
- CB2 Insights will continue to expand services offered by Maverick County Medical including deployment of its proprietary telehealth platform to support patients across the state of Texas.
- CB2 Insights paid a total cash consideration of CAD 0.98 million for the acquisition with 50% paid upfront and the remaining 50% following 6 months from the date of the transaction.
TORONTO, ON – October 7, 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 announce that it has completed the asset acquisition of Maverick County Medical (“MCM”) in Eagle Pass, Texas. The acquisition of MCM expands the Company’s bricks and mortar and telemedicine services to 14 States and adds 10,300 new patients to its current roster of 100,000.
MCM has been operating in Eagle Pass for over 15 years with strong patient retention. Services to patients include primary care, occupational medicine, disease management, minor surgeries, and treatment for auto accident injuries, among others. Services provided by MCM are primarily reimbursed through insurance carriers including Medicare, Medicaid and other commercial payors. MCM also provides services for un-insured patients however representing a smaller proportion of today’s revenues.
The Company expects to see continued growth in patient registrations and visits as MCM continues to thrive among the challenges most clinics have faced due to the recent COVID-19 pandemic. Further, the Company will work quickly to expand on the current offering of services by leveraging its current telemedicine infrastructure to provide access to patients across the state of Texas. The Company will also evaluate the current services offered to determine growth in new and complimentary services, add new lines of revenue from insurable services, and expand overall patient care.
“Our goal is to provide accessible and affordable healthcare solutions, “ said Prad Sekar, CEO, CB2 Insights. “With the expansion into Texas by way of acquisition of MCM, we welcome a family of practitioners, staff and doctors who align with the direction of our Company, and will be a central point of expansion for our services through telemedicine, subscription services for uninsured patients, and the vision for an integrated National healthcare network.”
MCM represents the first acquisition by the Company since its recently announced oversubscribed private placement of CAD 5.13 million in September 2020. The acquisition is also part of a 3-pronged growth model which includes growth from the current infrastructure, new services and acquisitions. The Company’s experienced management team continues to develop a robust pipeline of accretive and strategic acquisition targets that are revenue generating, profitable and offer significant opportunities for growth.
The Company paid a total cash consideration of CAD 0.98 million for MCM. Terms of the transaction include a customary transition by the previous owners with 50% of the cash awarded at the signing of the transaction, and 50% due 6 months from the date of completion of the transaction. MCM reported revenues in 2019 of CAD 1.6 million and net income of CAD 0.29 million.