- CB2 enters into binding Letter of Intent to acquire APEX Family Medical.
- APEX generated over CAD 2.5 million in revenues in fiscal 2019 and CAD 0.5 million in net income.
- Currently services over 5,000 patients in the Greater Denver area, with over 30 years of history.
- APEX will strengthen CB2’s clinical footprint in Colorado, accelerating the launch of its insurable services multi-disciplinary platform to an existing base of 17,000 Colorado patients.
- In conjunction with recently acquired Texas and Washington clinic, this acquisition would increase CB2’s revenue by CAD 4.7 million annually.
TORONTO, Nov. 05, 2020 (GLOBE NEWSWIRE) — CB2 Insights (CSE:CBII; OTCQB: CBIIF) (“CB2” or the “Company”), one of the largest multi-specialty healthcare systems in the United States, is pleased to announce that it has entered into a binding Letter of Intent (“LOI”) to acquire the assets of APEX Family Medical (“APEX”) in Denver, Colorado. The acquisition of APEX will strengthen the existing base of operations in the State. CB2 currently operates 4 physical clinics and a telemedicine platform in Colorado providing care to over 17,000 patients. The addition of APEX brings existing relationships with payors and insurable services that will bolster insurable services for existing patients.
APEX has been operating in Denver for over 30 years and has a growing patient base of over 5,000 from its operations. Services to patients are comprehensive and include primary care and wellness including psychotherapy, massage therapy and acupuncture. Within APEX there are opportunities for future growth including new providers to meet the growing demand from patients, extended hours, additional services, and increased use of telemedicine.
APEX offers the Company the opportunity to expand insurable services to its existing base of 17,000 Colorado patients. Further, the Company will be able to expand on the current offering of services at APEX by leveraging its existing telemedicine infrastructure to provide access to patients across the State. The Company will also evaluate the current services offered to determine growth in new and complimentary medical services, seek to add new lines of revenue from insurable services, and continue to expand overall patient care. The Company will also work to launch its subscription-based telemedicine offering at $199/year designed to support the needs of uninsured Americans with urgent and acute care needs.
“Our goal remains committed to establishing a national network of healthcare clinics to help millions of Americans gain access to affordable and accessible quality care,” said Prad Sekar, CEO, CB2 Insights. “With the expansion of infrastructure in Colorado by way of acquisition, we significantly expedite our launch of insurable services by a minimum of 6 months adding vital services to our existing base.”
APEX will represent the third acquisition by the Company since its recently announced oversubscribed private placement of CAD 5.13 million in September 2020. The expected acquisition is also part of a 3-pronged growth model which includes growth from the current infrastructure, new services and acquisitions. As per the binding LOI, total consideration of CAD 2.3 million will be paid in installments over a 6-month transition period. APEX reported revenues in 2019 of CAD 2.5 million and net income of CAD 0.5 million. The transaction is expected to close in Q4 2020. The transaction will remain subject to customary closing conditions, such as (but not limited to); approval from the Canadian Securities Exchange and CB2 Board of Directors approval of the definitive agreements.
About CB2 Insights
CB2 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 14 states in the US, providing multi disciplinary, primary and urgent care services to over 120,000 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, inability 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 or contact:
Jonathan L. Robinson CFA
Oak Hill Financial
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.
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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.
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