CB2 Insights Announces Acquisition of Texas-based Primary Care Medical & Wellness Clinic with $1.6 million in Revenue and Positive EBITDA
Texas-based Maverick County Medical has been providing Primary Care Services to over 10,300 patients in Eagle Pass and surrounding regions.
In 2019, Maverick County Medical generated CAD 1.6 million in revenues and CAD 0.29 million in net income.CB2 Insights will continue to expand services offered by Maverick County Medical including deployment of its proprietary telehealth platform to support patients across the state of Texas.CB2 Insights paid a total cash consideration of CAD 0.98 million for the acquisition with 50% paid upfront and the remaining 50% following 6 months from the date of the transaction.TORONTO, Oct. 07, 2020 (GLOBE NEWSWIRE) — CB2 Insights (CSE:CBII; OTCQB: CBIIF) (“CB2” or the “Company”), one of the largest integrative healthcare systems in the United States, is pleased to announce that it has completed the asset acquisition of Maverick County Medical (“MCM”) in Eagle Pass, Texas. The acquisition of MCM expands the Company’s bricks and mortar and telemedicine services to 14 States and adds 10,300 new patients to its current roster of 100,000.MCM has been operating in Eagle Pass for over 15 years with strong patient retention. Services to patients include primary care, occupational medicine, disease management, minor surgeries, and treatment for auto accident injuries, among others. Services provided by MCM are primarily reimbursed through insurance carriers including Medicare, Medicaid and other commercial payors. MCM also provides services for un-insured patients however representing a smaller proportion of today’s revenues.The Company expects to see continued growth in patient registrations and visits as MCM continues to thrive among the challenges most clinics have faced due to the recent COVID-19 pandemic. Further, the Company will work quickly to expand on the current offering of services by leveraging its current telemedicine infrastructure to provide access to patients across the state of Texas. The Company will also evaluate the current services offered to determine growth in new and complimentary services, add new lines of revenue from insurable services, and expand overall patient care.“Our goal is to provide accessible and affordable healthcare solutions, “ said Prad Sekar, CEO, CB2 Insights. “With the expansion into Texas by way of acquisition of MCM, we welcome a family of practitioners, staff and doctors who align with the direction of our Company, and will be a central point of expansion for our services through telemedicine, subscription services for uninsured patients, and the vision for an integrated National healthcare network.”MCM represents the first acquisition by the Company since its recently announced oversubscribed private placement of CAD 5.13 million in September 2020. The acquisition is also part of a 3-pronged growth model which includes growth from the current infrastructure, new services and acquisitions. The Company’s experienced management team continues to develop a robust pipeline of accretive and strategic acquisition targets that are revenue generating, profitable and offer significant opportunities for growth.The Company paid a total cash consideration of CAD 0.98 million for MCM. Terms of the transaction include a customary transition by the previous owners with 50% of the cash awarded at the signing of the transaction, and 50% due 6 months from the date of completion of the transaction. MCM reported revenues in 2019 of CAD 1.6 million and net income of CAD 0.29 million.About CB2 InsightsCB2 Insights (CSE:CBII OTCQB:CBIIF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Companies mission to improve the lives of patients through the prevention and treatment of health conditions and using proprietary technology to monitor, assess, and generate insights to help improve patient outcomes. The Company owns and operates a proprietary virtual telehealth platform, and a network of over 30 medical clinics across 13 states in the US, providing integrative, primary and urgent care services to over 100,000 patients annually.The Company has created works primarily to roster and treat patients seeking traditional and alternative treatments due to the ineffectiveness of conventional medicine, inability to find support through their existing care network, or in some cases, inability to access a primary care network. The Company offers both primary care via a traditional insurable services model and a disruptive low-cost subscription based urgent care offering for patients seeking immediate need to a healthcare provider via telehealth.The Company differentiates itself by being one of the largest integrative medical practices in the US that owns its own proprietary technology, data analytical assets, and clinical research expertise to support new market expansion, market access, data collection and analysis and drug discovery.The Company operates a proprietary electronic health record platform Sail (“Sail”) to document, treat, monitor and report on patient health outcomes. Developed in 2015, Sail is used internally across all of the Company’s clinical operations. Sail features a robust telemedicine platform that the Company uses to provide care to its National patient base. To support patient care and positive health outcomes, the Company is also focused on advancing safety and efficacy research surrounding alternative health treatments by monitoring and assessing Real-World Data (RWD) and providing Real-World Evidence (RWE) through our proprietary technology, data analytics, and a full service contract research organization.For more information please visit www.cb2insights.com or contact:Investor Relations
Jonathan L. Robinson CFA
Oak Hill Financial
416-669-1001Forward Looking StatementsStatements 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 Company’s unaudited financial results and projected growth.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.There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. CB2 disclaims any intention or obligation to update or revise such information, except as required by applicable law, and CB2 does not assume any liability for disclosure relating to any other company mentioned herein.No securities regulator or exchange has reviewed, approved, disapproved, or accepts responsibility for the content of this news release.