logo-loader
viewCB2 Insights

CB2 Insights acquires Colorado-based Relaxed Clarity in a cash and stock deal; shares rise

It's the data analytics company's second acquisition of 2019

masked person holding cannabis
CB2 gathers data and creates objective evidence in an effort to bring medical cannabis into traditional health care

CB2 Insights Inc (CSE:CBII) strengthened its US presence with the acquisition of Colorado-based medical cannabis clinic group Rae of Sunshine Health Services (ROSH) LLC, it announced on Thursday.

Under the terms of the acquisition, CB2 acquired 100% of ROSH and its subsidiaries for a combination of cash and stock, including a cash payment of US$200,000 and the issuance of 500,000 CB2 shares, in a deal worth around US$850,000 total.

Shares of CB2 powered over 5% higher to C$0.31 by midday Thursday on the back of the news.

READ: CB2 Insights strikes deal to acquire MedEval Clinic

Rae of Sunshine, operating under the name Relaxed Clarity, operates four clinics in Colorado. Last year the company posted nearly US$1.1 million in revenue.

“Based on 2018 revenue results of this acquisition, CB2 Insights is currently on track to achieve at least C$12.2 million in revenue for 2019,” said Prad Sekar, CEO at CB2 Insights. “We have an active pipeline of acquisition targets and along with organic growth within our existing operations.”

The Toronto-based data analytics company anticipates achieving its stated 2019 revenue goal of more than C$20 million, for year-over-year growth of more than 80% compared to 2018, it said in a statement.

CB2 gathers data and creates objective evidence in an effort to bring medical cannabis into traditional health care.

In March, the company acquired MedEval Clinic LLC, a medical cannabis evaluation and education center group with locations in Colorado and Arizona.

--Updated to reflect current share price--

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

 

Quick facts: CB2 Insights

Price: 0.135 CAD

CSE:CBII
Market: CSE
Market Cap: $10.64 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of CB2 Insights named herein, including the promotion by the Company of CB2 Insights in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Buds & Duds: Cannabis stocks off to rocky start ahead of much-anticipated...

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, slipped 1.7% at 130.3 points. Elsewhere, the OTCQX Cannabis Index lost 0.4% at 469.8 points. Buds today were Aleafia Health Inc (TSE:ALEF) (OTCMKTS:ALEAF), CB2 Insights Inc (CSE:CBII)...

1 day, 18 hours ago

2 min read