Inc () strengthened its US presence with the acquisition of Colorado-based medical cannabis clinic group Rae of Sunshine Health Services (ROSH) LLC, it announced on Thursday.
Under the terms of the acquisition, CB2 acquired 100% of ROSH and its subsidiaries for a combination of cash and stock, including a cash payment of US$200,000 and the issuance of 500,000 CB2 shares, in a deal worth around US$850,000 total.
Shares of CB2 powered over 5% higher to C$0.31 by midday Thursday on the back of the news.
READ: CB2 Insights strikes deal to acquire MedEval Clinic
Rae of Sunshine, operating under the name Relaxed Clarity, operates four clinics in Colorado. Last year the company posted nearly US$1.1 million in revenue.
“Based on 2018 revenue results of this acquisition, is currently on track to achieve at least C$12.2 million in revenue for 2019,” said Prad Sekar, CEO at . “We have an active pipeline of acquisition targets and along with organic growth within our existing operations.”
The Toronto-based data analytics company anticipates achieving its stated 2019 revenue goal of more than C$20 million, for year-over-year growth of more than 80% compared to 2018, it said in a statement.
CB2 gathers data and creates objective evidence in an effort to bring medical cannabis into traditional health care.
In March, the company acquired MedEval Clinic LLC, a medical cannabis evaluation and education center group with locations in Colorado and Arizona.
--Updated to reflect current share price--
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