*Skylight Health (formerly CB2 Insights) was rebranded on November 30, 2020 and now trades under the symbol CSE:SHG*
- CB2 enters into binding Letter of Intent to acquire APEX Family Medical.
- APEX generated over CAD 2.5 million in revenues in fiscal 2019 and CAD 0.5 million in net income.
- Currently services over 5,000 patients in the Greater Denver area, with over 30 years of history.
- APEX will strengthen CB2’s clinical footprint in Colorado, accelerating the launch of its insurable services multi-disciplinary platform to an existing base of 17,000 Colorado patients.
- In conjunction with recently acquired Texas and Washington clinic, this acquisition would increase CB2’s revenue by CAD 4.7 million annually.
TORONTO, ON – November 05, 2020 – CB2 Insights (CSE:CBII; OTCQB: CBIIF) (“CB2” or the “Company”), one of the largest multi-specialty healthcare systems in the United States, is pleased to announce that it has entered into a binding Letter of Intent (“LOI”) to acquire the assets of APEX Family Medical (“APEX”) in Denver, Colorado. The acquisition of APEX will strengthen the existing base of operations in the State. CB2 currently operates 4 physical clinics and a telemedicine platform in Colorado providing care to over 17,000 patients. The addition of APEX brings existing relationships with payors and insurable services that will bolster insurable services for existing patients.
APEX has been operating in Denver for over 30 years and has a growing patient base of over 5,000 from its operations. Services to patients are comprehensive and include primary care and wellness including psychotherapy, massage therapy and acupuncture. Within APEX there are opportunities for future growth including new providers to meet the growing demand from patients, extended hours, additional services, and increased use of telemedicine.
APEX offers the Company the opportunity to expand insurable services to its existing base of 17,000 Colorado patients. Further, the Company will be able to expand on the current offering of services at APEX by leveraging its existing telemedicine infrastructure to provide access to patients across the State. The Company will also evaluate the current services offered to determine growth in new and complimentary medical services, seek to add new lines of revenue from insurable services, and continue to expand overall patient care. The Company will also work to launch its subscription-based telemedicine offering at $199/year designed to support the needs of uninsured Americans with urgent and acute care needs.
“Our goal remains committed to establishing a national network of healthcare clinics to help millions of Americans gain access to affordable and accessible quality care,” said Prad Sekar, CEO, CB2 Insights. “With the expansion of infrastructure in Colorado by way of acquisition, we significantly expedite our launch of insurable services by a minimum of 6 months adding vital services to our existing base.”
APEX will represent the third acquisition by the Company since its recently announced oversubscribed private placement of CAD 5.13 million in September 2020. The expected acquisition is also part of a 3-pronged growth model which includes growth from the current infrastructure, new services and acquisitions. As per the binding LOI, total consideration of CAD 2.3 million will be paid in installments over a 6-month transition period. APEX reported revenues in 2019 of CAD 2.5 million and net income of CAD 0.5 million. The transaction is expected to close in Q4 2020. The transaction will remain subject to customary closing conditions, such as (but not limited to); approval from the Canadian Securities Exchange and CB2 Board of Directors approval of the definitive agreements.
