TORONTO, Dec. 11, 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-26of-care to the medical cannabis community, announces a warrant exercise incentive program (the “Program”) which has been implemented to encourage the exercise of the Company’s outstanding warrants. The Warrants are exercisable at a price of $0.09 per Common Share starting December 11, 2019 until December 26, 2019 (the “Early Exercise Period”). The Company has received confirmation that shareholders Merida Capital, Phyto Partners, and other supportive institutional shareholders intend to support the Program.
The Program has been created to encourage the early exercise of only those outstanding warrants with an exercise price between $0.50 and $0.80 and an expiry date between December 19, 2019 and February 15, 2022 in order to become more reflective of the current share price.
“We are excited that CB2 Insights now has a clear cost structure that gives us full line of sight to hit profitability in Q1 2020,” said Prad Sekar, CEO of CB2 Insights. “The proceeds that will be raised from this program will allow us to manage through the seasonal pressures of our clinical operations while we continue expanding and accelerating the growth of our research and data business units.”
Under the Program, the Company is offering an inducement to each Warrant holder that exercises their warrants prior to December 26, 2019. If all the Warrants subject to the Program are exercised during the Early Exercise Period, CB2 expects to receive gross proceeds of approximately $1.06 million on or before December 26, 2019 and will issue up to approximately 11,819,291 common shares.
A small number of Warrants, representing less than 10% of the total number of Warrants eligible for participation in the Program, are held by insiders of the Company. Participation by any such insiders in the Program may constitute a related party transaction pursuant to Multilateral Instrument 61-101 – Special Transactions (“MI 61-101”). The Company is exempt from the formal valuation requirement pursuant to subsections 5.5(a) and (b) of MI 61-101, and from the minority approval requirement pursuant to subsection 5.7(1)(a) of MI 61-101. Pursuant to the policies of the Canadian Securities Exchange, a maximum of 10% of the Warrants subject to the Program will be allocated pro rata among the insiders of the Company holding existing Warrants.
The transaction is subject to the receipt of all final regulatory approvals including those from the Canadian Securities Exchange. Any warrants that are not exercised before the end of the Early Exercise Period will remain outstanding and will be exercisable for CB2’s Common Share on the same terms applicable to such Warrants as they existed prior to the Program and will no longer be eligible to the reduced exercise price of the Warrants.
About CB2 Insights
CB2 Insights (CSE:CBII) is a global leader in clinical operations, technology & analytics solutions and research and development services with a mission to mainstream medical cannabis into traditional healthcare. Providing immediate market access through its wholly-owned clinical network across 12 jurisdictions, proprietary data-driven technology solutions and comprehensive contract research services designed for those in both the medical cannabis and traditional life sciences industries, CB2 Insights is able to support its partners across the entire data and research spectrum.
CB2’s Clinical Operations business unit leverages extensive experience to develop clinical models with standard operating procedures, advanced workflows, training and ongoing management support. CB2 also owns and operates its own speciality clinics including the brands Canna Care Docs and Relaxed Clarity which assess nearly 100,000 patients seeking medical cannabis treatment to provide immediate market access to US-based product manufacturers for clinical trial and research programs.
The Company has built both electronic data capture (EDC) and clinical data management software (CDMS) which work to support its partners of any size to execute their data and clinical strategies.
CB2 also offers comprehensive contract research organization (CRO) services including full scale clinical trial management, trial design, monitoring and other key research functions used by licensed producers, multi-state operators and traditional pharmaceutical companies entering the medical cannabis space.
For more information please visit www.cb2insights.com.
For additional information, please contact:
Kim Nguyen – Director, Investor Relations
1.855.874.4999 ext. 212
kim.nguyen@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.
