CEO Prad Sekar said it was a milestone quarter as it reflected the first full reporting period that included revenue from all three clinical businesses
Inc () (OTCMKTS:CBIIF) revealed Friday that it posted record third-quarter revenue of C$4.2 million, a 29% increase from the previous quarter.
CB2, based in Mississauga, Ontario, noted that its upbeat quarter was achieved due to the fact that during the first nine months of 2019, it made successful strategic acquisitions of Relaxed Clarity, MedEval Clinics LLC and New Jersey Alternative Medicine (now operating as Canna Care Docs New Jersey).
The third quarter which ended September 30, was the first full reporting period that included the contributions of all three clinical businesses.
READ: CB2 Insights announces new partnership with VIVO Cannabis for cannabis-based medical treatment
In a statement accompanying the company’s latest numbers, CEO Prad Sekar said: “This was a milestone quarter for us at CB2, it was the first full reporting period that included the contributions of all three clinical businesses.”
CB2 said it now owns and operates one of the largest networks of medical cannabis clinics across the US, with a patient registry of 100,000 unique visitors annually.
As it delivers on its efficiency goals and begins to recognize increases in revenue from its technology, data and research services business units, CB2 said it will look to report full profitability in the coming quarters.
“Beyond our clinical business, we started to see our technology and research and development services begin to materialize into revenue-generating divisions,” said Sekar.
“The company has now booked approximately a quarter of a million in trials that will commence over the next 6 months, with C$4 million of opportunities in the pipeline.”
The boss said the company continued to blend the three divisions to gather real-world data.
“Going forward, the company will remain focused on transformative growth in all areas of our business. Therefore, giving us a clear path to profitability in the near future,” said Sekar.
For the quarter ended September 30, the company posted a loss of $1.1 million, compared to a loss of $1.9 million in the same period a year earlier, demonstrating a 43% improvement.
In a statement, the company also said it narrowed its adjusted-EBITDA (earnings before interest, tax, depreciation and amortization) loss by approximately 64% from the previous quarter and saw its first-ever month of positive adjusted-EBITDA in August.
In September, CB2 signed a deal with UK-based cannabis-evaluation group My Access Clinics to integrate its electronic data capture technology to assist in management of the clinics as well as extraction of pertinent data surrounding cannabinoid-based treatment among patients in the UK.
CB2 concentrates on real-world evidence obtained from data outside randomized trials and generated during routine clinical practice. The company has created tools that engage the medical community and provide the data doctors and other professionals need to recommend with confidence cannabis-based medicines.
Contact Uttara Choudhury at [email protected]
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