A Canadian company at the forefront of driving new levels of research and data into the medical cannabis industry is showing investors that the proof is in the pudding of third quarter results that they’re on the right track building toward major growth.
A company building out real fundamentals is sometimes like a unicorn in this industry, but
CB2 Insights (CB2) (
C.CBII,
OTC:CBTOF,
Forum) has built a successful business model from the ground floor up based on sound principles – create a data driven platform for prescribed medical cannabis, acquire clinical groups that bring recurring patient interactions to the tune of more than 100,000 annually, build a top-notch management team from the top down AND bottom up, and push forward with a drug development research strategy that is starting to bring in net-new revenue streams, all the while meeting the needs of an exploding marketplace.
CB2 concentrates on real-world evidence obtained from data outside randomized trials and generated during routine clinical practice. The Company has created tools that engage the medical community and provide the data doctors and other professionals need to recommend with confidence cannabis-based medicines.
Results from Operations
The following table set forth consolidated statements and financial information for the third quarter of 2019 ended September 30, 2019, and second quarter ended June 30, 2019. For further information, please refer to the Company’s Management’s Discussion & analysis on SEDAR at
sedar.com.
(Click image to enlarge)
Retail and institutional investors take note – these are particularly spectacular revenue numbers for a company with a relatively low market cap of $9.45M. CB2 revealed Friday that it posted record third-quarter revenue of C$4.2 million – a 29 percent increase from the previous quarter.
The Mississauga Ontario-based company noted that its boyant quarter was achieved due to the fact that during the first nine months of 2019 it made successful strategic acquisitions of Relaxed Clarity, MedEval Clinics LLC, and New Jersey Alternative Medicine – now operating as Canna Care Docs New Jersey.
Q3 was also the first full reporting period that included the contributions of all three clinical businesses.
In September,
CB2 signed an exclusive deal with UK-based cannabis evaluation group My Access Clinics to integrate its electronic data capture technology to assist in management of the clinics as well as extraction of pertinent data surrounding cannabinoid-based treatment among patients in the UK.
Also, the
July 2019 partnership between CB2 and Project TWENTY21 – the UK’s largest medical cannabis pilot project – made big waves in the industry.
In a statement following the company’s latest numbers, a jubilant CEO Prad Sekar commented:
“This was a milestone quarter for us at CB2, it was the first full reporting period that included the contributions of all three clinical businesses. We now operate one of the largest networks in the US, serving more than 100,000 unique patients annually. Beyond our clinical business, we started to see our technology and research and development services begin to materialize into revenue-generating divisions. The Company has now booked approximately a quarter of a million in trials that will commence over the next 6 months, with $4 million of opportunities in the pipeline. We continue to blend the three divisions to gather Real-World Data and provide Real-World Evidence with our global partners. Going forward, the Company will remain focused on transformative growth in all areas of our business. Therefore, giving us a clear path to profitability in the near future.”
CB2 corporate highlights for the third quarter ending September 30, 2019:
- September 19, 2019: CB2 signs an agreement with UK-based cannabis-evaluation group My Access Clinics to integrate its Electronic Data Capture Technology to assist in management of the clinics as well as extraction of pertinent data surrounding cannabinoid-based treatment among patients in the UK
- September 3, 2019: CB2 announces the appointment of Dr. Paola Cubillos MD – a prominent Colombian naturopathic and integrative medicine physician as the Company’s Medical Director in Colombia
- August 1, 2019: CB2 appoints corporate finance executive, Gerry Goldberg, to its Board of Directors. Mr. Goldberg will immediately assume the position as Chairman of the Audit Committee.
- July 31, 2019: CB2 expands its board of Director with the appointment of a former Johnson and Johnson executive Peter Cummins.
- July 18, 2019: CB2 was selected as the exclusive research technology platform for leading, and only independent scientific body on drugs in the UK, Drug Science for project TWENTY21.
- July 9, 2019: CB2 and Premier Health Group successfully completes Phase One of its Clinical Decision Support (CDS) tool integration with Juno, which is an Oscar Service Provide
About CB2 Insights
CB2 Insights is a Toronto-based company that has a mission to mainstream medical cannabis into traditional healthcare. The company operates the largest multi-state group of cannabis clinics in the US and has developed proprietary technology to collect clinically-validated, uniform data sets at the point-of-care. Founded in 2014, the Company posted revenue of $11 million in 2018 and is forecasting revenue of $20 million in 2019. With 28 clinics serving 12 states, the CB2 has built the largest patient registry of those seeking medical cannabis as a treatment. That patient registry is the foundation for producing comprehensive, real-world evidence to the cannabis industry.
CB2 recently reported that Phase One of its Clinical Decision Support tool integration has been successfully completed via
Premier Health Group and its Electronic Medical Records platform, Juno, which provides access to its over 4,600 primary care physician and healthcare practitioner users. The platform is intended to guide clinicians through the evaluation process for medical cannabis treatment.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.