Toronto-based data analytics firm CB2 insights has acquired medical cannabis clinic group Rae of Sunshine Health Services (ROSH) LLC, operating as Relaxed Clarity; thus strengthening its presence in the United States.
Notably, this is the second M&A deal announced by the former in less than three weeks.
The assets were bought through a combination of cash and stocks. CB2 reportedly paid US$200,000 in cash and agreed to issue 500,000 shares for 100% acquisition of ROSH and its subsidiaries. The share issuances, though, will be based on the 30-day volume weighted average price of the company’s shares recorded before the date of issuance and all shares will be subject to a minimum hold period of four months + 1 day from the date of each issuance.
Furthermore, the transaction includes future milestone incentive payments related to patient growth over the next twelve months that total as much as $100,000 in cash and up to $300,000 in shares, reports Benzinga.
As the news broke out, CB2 saw its shares surge by over 5% higher to C$0.31 by midday Thursday.
Colorado-based Relaxed Clarity – which operates 4 clinics in the state and provides medical cannabis evaluations and educational support to around 15,000 patients each year – posted around US$1.1 million in revenue in 2018.
Prad Sekar, CEO at CB2 insights, said that the company is right on track to achieve its C$12.2 million in revenue for the present year. “We have an active pipeline of acquisition targets along with organic growth within our existing operations,” the CEO was quoted as saying.
Just the previous month, the data-analytics firm had acquired MedEval Clinic LLC, a medical-cannabis evaluation and education group with centers in Colorado and Arizona.
In case you were not aware of what the company does, CB2 Insights gathers data and drafts objective evidence in an effort to bring medical cannabis into the traditional health-care system.