Shares of CB2 Insights (CSE:CBII) (OTCQB:CBIIF), one of the largest multi-specialty healthcare systems in the United States are continuing their rapid ascent which began in late-August. Today’s share pop came after the company announced that it has entered into a binding Letter of Intent to acquire the assets of APEX Family Medical in Denver, Colorado. 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.
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 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.
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.
Canadian-listed shares of CBII were last trading up 5.66% to $0.56 in late-morning trading with the stock currently hovering near its 52-week high.