CB2 Insights Expands Clinical Division into New Jersey with the Asset Acquisition of New Jersey Alternative Medicine Clinics
CB2 Insights (CSE:CBII; OTCQB: CBIIF) (“CB2” or the “Company”), a leading data-driven company focused on bringing real-world evidence driven from the point-of-care to the medical cannabis community, today announced it will take over patient care for one of New Jersey’s largest medical cannabis evaluation and education clinic groups on July 1, 2019. New Jersey Alternative Medicine (“NJAM”) will transfer all patient care to CB2 Insights under a performance-based agreement. CB2 will operate within the State of New Jersey under the Company’s Canna Care Docs brand, the largest multi-state medical cannabis clinic operator in the US. The acquisition of assets of NJAM will require no cash or stock payments upon closing.
“New Jersey is an exciting market for CB2; with over 50,000 active patients and growing across the state, and further advancements to the medical cannabis program to expand on indications and patient access, NJAM, who has already captured care of more than 25% of the market, will provide CB2 with a solid base of patients and revenue to capitalize on the growth this state will continue to see,” said Prad Sekar, CEO, CB2 Insights. “We continue to expand on our commitment to grow our market share in the US, through M&A and organic growth activities, while ensuring that growth provides immediate revenue recognition and a drive to consolidated profitability. By acquiring the assets of NJAM and assuming their patient care, we will become one of the dominant players in the state of New Jersey and provide shareholders with near term revenue growth and longer-term aggregate data growth by adding an additional 15,000 patients to our registry.”
New Jersey Alternative Medicine currently operates 6 clinics throughout the state, servicing over 15,000 patients. The decision to transition care to CB2 Insights comes at a time where the patients in New Jersey continue to seek out a standardized quality of care with an emphasis on education and support, all of which continue to remain the focus of the Company and the strength that it brings to each market it serves with an established and proven clinical operating model. CB2 plans to increase annual patient volumes through aggressive marketing programs and enhanced patient care, in line with each of its 3 clinical brands.
This announcement marks entry into the third new state for the Company since April 2019, following successful acquisitions of Relaxed Clarity and MedEval Clinics in Colorado and Arizona. As of July 1, the Company will operate nearly 40 medical cannabis evaluation and education centres across the US and provide telemedicine services to patients in Maine and New York.
No cash or other consideration will be payable at the time of closing. Over the next 13 months, CB2 Insights will pay a combination of cash and/or shares based on achievement of retained patient volumes where stock will be calculated at the 10-day VWAP at the time of issuance and where the first stock award will not be granted until a minimum of 90 days following the closing of the agreement. All securities issues will have a 4-month hold from the date of issuance. Also, CB2 Insights will not assume any of NJAM’s liabilities including all indebtedness.
About CB2 Insights
CB2 Insights has a mission to mainstream medical cannabis into traditional healthcare. We do so by gathering data and creating objective real-world evidence through our proprietary software and service brands. Using clinical management and data collection software at the point-of-care, CB2 Insights and its group of sub-brands has become a leading force behind bringing traditional healthcare protocols to the rapidly evolving global cannabis industry.
For more information please visit www.cb2insights.com.
Chief Marketing Officer – CB2 Insights
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Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in CB2’s filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements regarding the opportunity to provide services and software to the U.S. cannabis industry.
Although CB2 has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are subject to inconsistent legislation and regulation; change in laws; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and recreational-use marijuana industry and; regulatory or political change.
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