Proactive Investors - Run By Investors For Investors

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


Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full CBII profile View Profile

CB2 Insights Timeline

Related Articles

Sydney Harbour Bridge
January 22 2019
A phase I study in Australia is evaluating a cannabis spray therapeutic in cancer patients.
June 18 2019
The cannabis company's strategy is to focus solely on the massive California market, where it plans to establish a network of dispensaries with owner-operators
A visual representation of a drug candidate working in a dog
January 28 2019
The company has reaffirmed its upcoming milestones as it confirmed December quarter achievements.
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use