CB2 Insights, a data company looking to use predictive analytics software to improve the medical cannabis industry, has announced the completion of its non-brokered private placement for gross proceeds of $5.74 million CAD.
The $5.74 million marks an oversubscription of the original offering of $5 million CAD. New York-based Merida Capital Partners led the private placement round with an investment of $3.68 million CAD.
“CB2 Insights fills a critical gap in the market, bringing highly controlled, clinically-validated Real World Evidence to the cannabis industry.”
CB2 Insights is focused on bringing real-world evidence driven from the point-of-care to the medical cannabis community. It stated that a portion of these proceeds will go towards helping the Mississauga-based company with its “aggressive” merger and acquisition strategy. Prad Sekar, the CEO of CB2 Insights said the company has plans to acquire an undisclosed number of US-based medical cannabis evaluation clinics. The company plans to execute these acquisitions within the current and next fiscal year.
“With our background as clinical practice management operators, our team has proven our ability to increase the revenues and profitability of acquired clinics while reducing patient churn,” said Prad Sekar, the CEO of CB2 Insights. “The scale we are building is not simply for a roll-up, we are using the data we gather within our operations to bring real-world evidence to the medical cannabis space and to develop new predictive analytics tools for all industry stakeholders.”
Merida has made a number of investments that cover the a large portion of the cannabis supply chain. It stated that it has deployed more than $70 million of capital into the cannabis space. The firm has 23 investments with a focus on medical cultivation, cultivation infrastructure, data and technology services, and pharmaceutical development.
“CB2 Insights fills a critical gap in the market, bringing highly controlled, clinically-validated Real World Evidence to the cannabis industry,” said Mitch Baruchowitz, managing partner at Merida Capital Partners. “We are pleased to add CB2 to our portfolio as we continue to support game-changing tools that engage the medical community while giving doctors and the medical community at large the data they need to confidently recommend cannabis-based medicines.”
Sekar noted that Merida’s deep understanding of the cannabis industry makes it an ideal strategic partner for CB2 Insights. “Attracting a lead order from such a strong presence in the market provides further validation of our vision and our ability to execute on that vision as we enter this pivotal chapter in CB2 Insights’ history,” he said.
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