The Toronto-based company will assume all clinical care of the 15,000 patients at NJAM’s 6 facilities in the state. The clinics are part of the Canna Care Docs brand, which is the largest multi-state medical cannabis clinic operator in the US.
New Jersey marks the third US state CB2 has expanded into since April, following the acquisitions of Relaxed Clarity and MedEval Clinics in Colorado and Arizona. All told, the company will operate about 40 medical cannabis evaluation and education facilities in the US, in addition to telemedicine services to patients in Maine and New York.
The company's share price rose nearly 3% to C$0.18 in Toronto and 5.7% to US$0.14 on OTC Markets.
“New Jersey is an exciting market for CB2; with over 50,000 active patients and growing across the state, and further advancements to the medical cannabis program to expand on indications and patient access,” CEO Prad Sekar said. “NJAM, who has already captured care of more than 25% of the market, will provide CB2 with a solid base of patients and revenue to capitalize on the growth this state will continue to see.”
CB2 Insights is a data-driven company with the aim of folding cannabis treatment into the traditional health care sector by collecting information and offering predictive point-of-care analysis.
In a separate note to shareholders Tuesday, CEO Prad Sekar updated the investment community on the company's corporate strategy.
“We continue our move to become the leading independent provider of clinical research and the industry’s premier data insights platform for clinically-led Real World Evidence studies,” said Sekar.
“Today pharmaceutical and phytopharmaceutical companies spend hundreds of millions of dollars on clinical trials and data to support their R&D and product commercialization efforts. We believe we are very well positioned to be a valuable and trusted source of data to support these efforts. We have been fortunate and appreciate the support of some of the largest institutional investors in the cannabis industry who are allowing us to grow aggressively and scale our business to profitability.”
CB2's annual general meeting will be held this week in Mississauga, Ontario.
--Updates with additional comment--
--Addiftional reporting by Angela Harmatas--
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