CB2 Insights Inc (CSE:CBII) announced Wednesday that it had finalized the acquisition of MedEval Clinic LLC as the data analytics company continues to bolster its presence in southwestern United States.
MedEval Clinic runs a network of health centres in the states of Colorado and Arizona that offer cannabis evaluation and educational services. The company reported around C$1 million in revenue last year.
CB2 acquired MedEval in a combination of cash and stock with CB2 shelling out US$150,000 in cash as well as 450,000 of its shares worth a deemed value of US$225,000. Additional milestone incentives are in place, which are valued at up to US$300,000.
The new acquisition is in line with CB2’s clinical consolidation strategy, according to CEO Prad Sekar.
“With the completion of this additional 2019 acquisition, CB2 continues to solidify our position as the leading group of multi-state medical cannabis evaluation and education centers in the US,” said CB2’s Sekar.
“These acquisitions not only bring meaningful lift to our top line revenue, they are key to growing our data pool as more and more stakeholders are looking for clinically-validated, evidence-based data to assess the true efficacy of cannabis treatment globally.”
CB2 concentrates on gleaning real-world evidence obtained from data outside randomized trials and generated during routine clinical practice. The company has created what it says are game-changing tools that engage the medical community and provide the data doctors and other professionals need to recommend with confidence cannabis-based medicines.
The Toronto-based company currently evaluates 65,000 patients annually through its clinic network and handles millions of clinically validated data points to advance understanding of the effectiveness and risks associated with cannabinoid therapy.
Shares of CB2 closed at C$0.31 on Tuesday in Toronto.
Ellen Kelleher also contributed to this report
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