TORONTO, June 24, 2019 (GLOBE NEWSWIRE) -- 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, has announced the date of its first Annual General Meeting (AGM) and Special Meeting of Shareholders on June 27, 2019 at 10am EST at its head office at 5045 Orbitor Drive, Mississauga, ON.
Corporate Strategic Update
The AGM will provide an opportunity for CB2 Insights to present its shareholders, in-person, the latest updates and future growth opportunities aligned with its mission to be the largest aggregator and provider of Real World Data and Evidence (“RWD” and “RWE”) related to the safety, efficacy and effectiveness of medical cannabis and cannabis derived medications.
Following a transformative year in 2018 and year-over-year and sequential growth in the first quarter of 2019, both organically and through M&A activity, the Company continues its effort to drive towards profitability. The Company operates an already profitable clinical business model, which generated over 15% positive EBITDA in Q1 2019, with these additional cash flows being reinvested into the technology and data insights divisions. The Company has made significant improvements in its overall EBIDTA results and will continue to drive towards achieving a profitable consolidated business model.
The Company is uniquely positioned to capture value today as the largest clinical network in the US serving over 85,000 patients annually with a variety of health indications leveraging medical cannabis therapy as well as now looking to expand internationally to capture new opportunities to increase its global patient registry. Its position as a healthcare focused operation alleviates concerns and challenges faced by a volatile cannabis industry with the vast majority of regulations and subsequent restrictions placed on companies that directly touch or service the plant itself.
The Company has already begun its alignment with global leaders in the phytopharmaceutical industry and with international clinical providers to expand its patient registry and data monetization opportunities. The Company anticipates it will achieve new revenues streams from its data assets by the end of 2019. Its strong clinical network has enabled the Company to develop new data-specific revenue channels from pharmaceutical and phytopharmaceutical companies seeking to develop clinical trials for both prospective and retrospective studies. These studies have since lead to the ability for manufacturers to better understand opportunities for developing safety and efficacy claims used in the registration process with regulators and insurance providers to support deeper product commercialization strategies. These new developments have validated the Company’s strategy to harness its network of patients and physicians thereby creating a vehicle for participation in clinical trials using necessary protocols and informed patient consent while enabling new revenue streams to complement the Company’s already profitable clinical business model.
“We continue our move to become the leading independent provider of clinical research and the industry’s premier data insights platform for clinically-led Real World Evidence studies,” said Prad Sekar, CEO, CB2 Insights. “Today pharmaceutical and phytopharmaceutical companies spend hundreds of millions of dollars on clinical trials and data to support their R&D and product commercialization efforts. We believe we are very well positioned to be a valuable and trusted source of data to support these efforts. We have been fortunate and appreciate the support of some of the largest institutional investors in the cannabis industry who are allowing us to grow aggressively and scale our business to profitability.”
The Company has been backed by leading institutional funds in the cannabis industry, including but not limited to, Merida Capital, Phyto Partners, Arcadian Fund, Cannabis Growth and Opportunity Corp and Quinsam Capital. Merida Capital, who previously led the Company’s go-public round with $3.7 million of the total $5.7 million capital raised, recently upsized their position in their promissory note to the Company in support of the Company’s continued drive to profitability and strategic growth opportunities that exist in the near-term. Merida has agreed to increase principal amount of the original promissory note from US$2,400,000, to US$3,000,000 and to extend the term of the note from June 2020 to December 2020. In addition, interest rate payable under the note has decreased from 15% to 12% per annum and will be payable in shares of Company based on a discounted rate. Interest accrued to June 6, 2019 will be paid with the issuance of 1,219,520 shares, subject to approval of the CSE. In addition, Merida has agreed to exchange the amended promissory note for a convertible debenture when the Company’s shares trade at or above $0.50, subject to CSE approval.
The Company looks forward to hosting shareholders at the upcoming Annual General Meeting of Shareholders. Any presentation slides or other material containing any otherwise information not previously disclosed will be posted to the Company’s website at the close of the meeting.
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.
Primary Contact:
Dan Thompson
Chief Marketing Officer – CB2 Insights
1.416.670.9316
For Investor Inquiries:
Sean Peasgood
1.647.362.8286
investors@cb2insights.com
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.
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.