CB2 Insights, provides healthcare services through brick and mortar clinics and a virtual telemedicine platform to a network of over 100,000 patients across 12 States;
The Company recently announced profitability in Q2 2020, free cash flow and an oversubscribed private placement of $CAD 5.13 million;The Company generated $CAD 14 million in 12-month trailing revenue from insurable and non-insurable services.
TORONTO, Oct. 06, 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 provide the following corporate update and outlook on growth for 2020 and 2021. CB2 Insights Inc. is a US-focused, healthcare services and technology company. The Company owns and operates a proprietary virtual telehealth platform and a network of over 30 medical clinics across 12 states in the US, providing integrative, primary and urgent care services since 2017 to over 100,000 patients annually.The Company is positioning itself to become one of the largest national networks of health centers in the US powered by technology and telemedicine delivery mechanisms. Its fast-growing customer base will aim to reach millions in the coming years as they continue to expand on services for both insured and uninsured segments of the US population. CB2’s revenue stream will be driven by membership subscription revenue and insurable services through traditional insurance payors, most notably Medicare and Medicaid, in both traditional bricks-and mortar clinics, and a proprietary virtual telemedicine offering.CB2 is led by a strong management team with over 50 years of collective experience in clinical practice management, technology and primary care in both the Canadian and US healthcare market. Further, it is well positioned to execute against its strategy. In Q2 2020, it announced positive EBITDA and free cash flow for the very first time – a trend that has continued into Q3 2020. It also recently strengthened its balance sheet with a $5.13 million upsized and oversubscribed private placement, bringing total cash in the company to over $6 million.The Company’s growth will be focused on a 3-pronged strategic plan generating strong results both organically and through targeted, accretive M&A activity.Growth from the Current Infrastructure: Patients within the current roster will be offered a full suite of primary care and urgent care services. The Company currently generates an annual average of $150 per patient based on its historical service offering. As primary care services roll-out strategically over the next 12 months via its bricks and mortar clinics and telemedicine platform, the Company expects to grow the per-patient revenue per year; with minimal (or no) cost to the patient directly but rather billed through insurance providers.
Growth from New Services: The Company has launched one of the most affordable healthcare solutions in the US to support the over 40 million Americans without access to services due to the high-cost of delivery of such services. At USD $200 a year, the Company is offering a suite of urgent healthcare services delivered solely through its telemedicine platform, to support patients that have limited options available today. This is a highly profitable means of healthcare delivery and the Company expects significant uptake of its subscription services over the next 12 months.
Growth from Acquisitions: Based on its historical success of clinical acquisitions, the Company is targeting 8-10 acquisitions over the next 12 months which will lead to growth in patient count, revenue & profitability and new market expansion. The Company has developed a strong pipeline of acquisition targets, including several that it anticipates closing on within 2020, that should lead to strong revenue and profitability growth. Further, the Company expects to bolster organic growth in each of the acquisition targets through the delivery of its telehealth platform, introduction of complementary billable services, and improvement to the cost structure through technology, workflow optimization and centralization of key functions.
Prad Sekar, Chief Executive Officer of CB2 commented “This is the right time for this aggressive growth strategy. We have the management expertise, capital and infrastructure to execute against our 3-pronged plan. In the coming months, shareholders can expect to see continued newsflow to support our growth model. Over the last 12 months, we have focused on successfully reaching profitability. We now fully anticipate such growth to accelerate as we move toward this exciting future.”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 12 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, lnability 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.Forward 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.For more information please contact: Investor Relations
Jonathan L. Robinson CFA
Oak Hill Financial 416-669-1001
Bay Street News