TORONTO, July 14, 2020 (GLOBE NEWSWIRE) — CB2 Insights Inc. (“CB2” or the “Company”) (CSE: CBII; OTCQB: CBIIF), one of the largest integrative… Stock gets a boost from a positive analyst report. Walmart is increasing its majority-stake in Flipkart by leading a new $1.2 billion financing round in the Indian e-commerce giant. The fresh equity round led by Walmart, which acquired majority stake in Flipkart for $16 billion two years ago, values Flipkart at $24.9 billion post-money, the two companies said. The American retail group said the […] (Kitco News) – The first half of the year saw record investment demand for gold and the World Gold Council (WGC) said they expect that insatiable appetite to remain a dominant theme in the second half of the year.
TORONTO, July 14, 2020 (GLOBE NEWSWIRE) — CB2 Insights Inc. (“CB2” or the “Company”) (CSE: CBII; OTCQB: CBIIF), one of the largest integrative healthcare systems in the United States, today reported its Q1 2020 consolidated financial results for the period ended March 31, 2020. Additional information concerning the Company, including its unaudited condensed consolidated interim financial statements and related management’s discussion and analysis (“MD&A”) for the period ended March 31, 2020, can be found at www.sedar.com and on the Company’s website (www.cb2insights.com). All amounts are expressed in Canadian dollars unless otherwise noted.
- CB2 has continued to see growth in patient visits and registrations, while ongoing improvements to its business model and operating structure have led to reduced costs for delivery of services;
- The Company is weathering the COVID-19 pandemic well and operational performance has materially improved subsequent to the end of Q1 2020;
- The Company has begun its expansion to traditional healthcare services including urgent and primary care, insurable services focused on Medicaid and Medicare eligible patients; representing the largest proportion of healthcare spending in the US;
- With CAD $1.2 million in cash at the end of June 2020, the Company is well positioned and focused now on growth through a 3-pronged approach including same services, new services (direct primary care) and accretive acquisitions.
Prad Sekar, Chief Executive Officer of CB2 stated “Entering into Q1 2020, we remained committed to strengthening the foundation and fundamentals of the business to help us achieve profitability by Q2 2020. Our focus was on preserving capital and ensuring continued improvements to our operating model through process optimization and proprietary technology. We saw growth in new patient visits, technology contracts and were able to quickly adjust and stabilize our business from the impact of the COVID-19 Pandemic. We are now positioned to realize accelerated growth over 2020 and 2021.”
Summary of Q1 2020 Key Milestones and Consolidated Results
- Total revenue for Q1 2020 was $2.93 million, up from $2.8 million from the prior year;
- Gross profit was $1.9 million in Q1 2020 compared to $2.2 million from the year prior; a decrease of 13.6% due to the addition of the three new acquisitions in 2019 not reflected at the same period last year. Some of these clinics operate with provider hours paid on an hourly basis. With seasonality impact, we see higher cost of delivery during this time but expect that the negative impact on gross margin will be short-term in nature
- Adjusted EBITDA loss was $0.6 million in Q1 2020 versus adjusted EBITDA loss of $0.7 million from the prior year due to continued improvements to the operating model and top line growth;
- In January 2020, the Company was selected by Vireo Health to support a US FDA application for a study on the safety and efficacy of cannabis-based topical treatments developed by Vireo Health;
- In January 2020, the Company appointed Mr. Tom Brogan as independent Director who brings over 40 years of experience in aggregating and commercializing anonymized healthcare data; and
- In March 2020, the Company launched the industry’s first medical cannabis insights dashboard – https://cb2insights.ca/data;
Q1 2020 Financial Highlights
Highlights from Q2 2020:
- In April 2020, the Company launched Skylight Health Group (“SHG”) as part of its clinical operations in the US to focus on integrated healthcare and providing low cost insurable services to patients;
- In April 2020, the Company qualified and received USD $652,500 from government funds in the US as part of the COVID-19 pandemic. As of June 30, 2020, the Company has approximately CAD $1.2 million in cash;
- In April, May and June 2020, the Company saw 3 consecutive months of profitability on an unaudited basis driven by improved operating margins from efforts in 2019 and Q1 2020, as well as growth in top line revenues;
- In June 2020, the Company amended its promissory note held by Merida Capital Partners, extending it to December 2022, reducing its interest rate of from 12% to 8%, payable in shares or cash and the company’s option and a forced conversion at a premium to the current market price;
- In July 2020, the Company launched the first in a series of monthly medical reports derived from real-world clinical treatments on a variety of healthcare conditions and modalities across the United States, Canada and United Kingdom.
Mr. Sekar continued, “What we have built in 2019 and the first quarter of 2020, allows us to accelerate our growth moving forward. We believe the expansion into traditional healthcare verticals is both accretive and prudent given the future role this company can play in the real-world evidence space. It also provides a huge opportunity to further grow and capitalize on one of the largest and underserviced segments of healthcare spending in the US. Our focus in 2020 and 2021 will be on growth from same services, growth from new services (SHG), and growth through accretive acquisitions.”
The Company has scheduled its earnings call to Wednesday July 15, 2020 at 9am ET.
Conference call details:
Non-GAAP Financial Measures
This Press Release contains references to Adjusted EBITDA and Gross Margin. These financial measures are not measures that have any standardized meaning prescribed by IFRS and are therefore referred to as non-GAAP measures. The non-GAAP measures used by the corporation may not be comparable to similar measures used by other companies. Adjusted EBITDA is defined as “income (loss) before interest expenses, taxes, expenses related to listing on the Canadian Securities Exchange, depreciation, foreign exchange and financial expenses.
The Company uses these non-GAAP measures because they provide additional information on the performance of its commercial operations. Such tools are frequently used in the business world to analyze and compare the performance of businesses; however, the Company’s definition of these metrics may differ from those of other businesses. CB2 Insights will, at times, use certain non-GAAP financial measures to provide readers with additional information in order to assist investors in understanding our financial and operating performance. CB2 Insights believes that these non-GAAP measures provide readers with useful information about the Company’s operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
Adjusted EBITDA excludes the effect of share-based compensation expenses and related payroll taxes as well as removes substantial one-time costs for unusual business activities. Within the 2018 reporting period, one-time costs associated with fees pertaining to the Company’s public listing are excluded from this figure. Additional discussion on this can be found in CB2 Insights’ Management Discussion and Analysis filed on SEDAR.
Such non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, the corresponding measures calculated in accordance with IFRS. See the Company’s audited Financial Statements for a reconciliation of the non-GAAP measures.
Please refer to “Non-GAAP Financial Measures” in this press release.
About CB2 Insights
CB2 Insights (CSE:CBII) CB2 Insights is a healthcare services and technology company, working to positively impact patient health outcomes. Our mission to mainstream alternative health treatments into traditional healthcare by recognizing the need for patient treatment diversity, and the impacts of integrating alternative and conventional medicine. The Company works primarily to roster and treat patients who are seeking alternative treatments due to the ineffectiveness of conventional medicine, and the inability to find support through their existing care network, or in some cases, inability to access a primary care network. Medical services offered by the Company are defined as Integrative medicine, where we work to understand the real world evidence for the safety, impact and effectiveness of medical treatments including plant based medicines that often lack sufficient research and therefore adoption by conventional healthcare providers.
To support patient care and positive health outcomes, the Company is also focused on advancing safety and efficacy research surrounding alternative health treatments by monitoring and assessing Real-World Data (RWD) and providing Real-World Evidence (RWE) through our proprietary technology, data analytics, and a full service contract research organization. .
The Company’s primary operations are in the United States, with application to its insights, technology and research services deployed in other International markets including Canada, United Kingdom and Colombia.
The Company’s disciplined operating model, allows patients to receive access to care in a time efficient and cost-effective manner. Utilizing virtual telehealth and over 31 physical brick and mortar clinics, the Company currently treats over 100,000 patients across 12 States. Utilizing proprietary technology and data analytic platforms, the Company is able to monitor, study and assess a variety of healthcare treatments and products for the safety, efficacy and effectiveness. The Company believes it is well positioned to be the research and technology partner of choice for multiple stakeholders including Big Pharma, Life Sciences, Regulatory Bodies and Payors within the traditional and integrative medical industry.
For more information please visit www.cb2insights.com.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in CB2’s filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements regarding the Company’s unaudited financial results and projected growth.
Although CB2 has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are subject to inconsistent legislation and regulation; change in laws; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and recreational-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. CB2 disclaims any intention or obligation to update or revise such information, except as required by applicable law, and CB2 does not assume any liability for disclosure relating to any other company mentioned herein.
No securities regulator or exchange has reviewed, approved, disapproved, or accepts responsibility for the content of this news release.
Mississauga, Ontario, CANADA
Author: CB2 Insights
Why Lumber Liquidators Stock Just Popped 16%
Shares of flooring products retailer Lumber Liquidators (NYSE:LL) are going through the roof in Tuesday trading, up 16.2% as of 1 p.m. EDT after the company’s stock was upgraded by analysts at Loop Capital.
Loop upgraded Lumber Liquidators shares to “buy” with an $18 price target (from “hold” and an $11 target) today, reports TheFly.com, arguing that tariffs on imported goods have permitted Lumber Liquidators to sell product at strong prices, boosting gross profit margins. Loop believes that when Lumber Liquidators reports its second-quarter earnings three weeks from now, on August 5, profits will exceed expectations.
Moreover, while COVID-19 has weighed on many retailers’ results, Loop believes that the pandemic could have a “positive impact” on the stock — presumably from homebound consumers spending time and money on home improvements.
Image source: Getty Images.
This is not, however, a common belief. According to data collected by Yahoo! Finance, the consensus opinion on Lumber Liquidators is that Q2 will show a sizable loss — $0.20 per share is the general expectation. The third quarter, which ends in September, is expected to see a return to profitability for Lumber Liquidators; but at a projected profit of just $0.01 per share, it seems analysts generally expect to see the pandemic continue to weigh on Lumber Liquidators’ business for some time to come.
So is Loop right in its projections, or is everyone else? Time will tell. Specifically, on August 5, Lumber Liquidators will finally give us its own insight into how things are playing out.
Author: Rich Smith
Walmart leads $1.2 billion investment in India’s Flipkart – TechCrunch
Walmart is increasing its majority-stake in Flipkart by leading a new $1.2 billion financing round in the Indian e-commerce giant. The fresh equity round led by Walmart, which acquired majority stake in Flipkart for $16 billion two years ago, values Flipkart at $24.9 billion post-money, the two companies said.
The American retail group said the fresh capital would help Flipkart, which was valued at $20.8 billion two years ago, further grow its e-commerce marketplace in India as the world’s second largest internet market begins to recover from Covid-19 crisis. A group of other existing investors also participated in the new financing round, a Flipkart spokesperson told TechCrunch but declined to identify them individually.
“We’re grateful for the strong backing of our shareholders as we continue to build our platform and serve the growing needs of Indian consumers during these challenging times,” said Flipkart chief executive Kalyan Krishnamurthy in a statement.
“Since Walmart’s initial investment in Flipkart, we have greatly expanded our offer through technology, partnerships and new services. Today, we lead in electronics and fashion, and are rapidly accelerating share in other general merchandise categories and grocery, all while providing increasingly seamless payment and delivery options for our customers. We will continue innovating to bring the next 200 million Indian shoppers online,” he added.
Flipkart, which competes with Amazon in India, said its monthly active customers figure surged 45% in the financial year that ended in March this year, compared to the year before, and these customers are making 30% more transactions. The 13-year-old firm said it recently surpassed 1.5 billion visits per month.
The new capital infusion comes at a time when a new powerful player has started to make inroads in the Indian e-commerce market. JioMart, a joint venture between Reliance Retail (India’s largest retail chain) and Jio Platforms (India’s largest telecom operator), launched earlier this year in select sub urban areas of Mumbai and has since expanded to more than 200 cities and towns across the nation.
Amazon and Flipkart are still struggling to aggressively expand their footprint in India, where physical stores continue to drive the vast majority of retail sales. This is an area where JioMart appears to have an advantage — at least on paper. The platform could leverage from Reliance Retail’s vast presence in the nation.
Founded in 2006, Reliance Retail serves more than 3.5 million customers each week through its nearly 10,000 physical stores in more than 6,500 cities and towns. Reliance Retail, like Jio Platforms — which has raised more than $15.7 billion from a dozen high-profile investors since late April, is a subsidiary of Reliance Industries, India’s most valued firm. It is controlled by Mukesh Ambani, India’s richest man.
At stake is one of the world’s fastest-growing e-commerce markets that is poised to grow even further as more first-time internet users begin to shop online. India’s e-commerce market is estimated to reach more than 300 million shoppers by 2025, according to estimates by Bain & Company. These shoppers would have bought items worth more than $100 billion from online platforms, the firm projected.
In recent quarters, Flipkart and Amazon have made a number of bets to expand their reach in India. Both of them have rolled out support for Hindi language (Flipkart has added several additional Indian languages as well), and partnered with neighborhood stores.
Author: Manish Singh
Voracious investment gold demand to continue in second half – WGC
Although investment demand is likely to remain strong, the WGC noted that jewelry demand is expected to remain weak.
“An economic contraction will likely result in lower demand for gold in the form of jewelry, technology or long-term savings. This is particularly evident in key gold markets such as China or India,” the analysts said.
Tuesday, in its mid-year outlook the WGC said that the COVID-19 pandemic has reshaped the long-term investment landscape. The analysts added that in an environment with massive uncertainty and low interest rates, gold will continue to shine as a safe-haven asset.
The analysts said that expectations for the global economy to quickly recover from the devastating effects of the coronavirus are starting fade. The virus, particularly in the U.S., continues to spread, forcing some state and local governments to reintroduce lockdown measures.
“Against this backdrop, we believe that gold can be a valuable asset: it can help investors diversify risks and may positively contribute to improving risk-adjusted returns,” the WGC said.
Investors are paying more attention to gold as a safe-haven hedge as renewed worries of weak economic growth weighs on equity markets, the WGC said. Global equity markets have seen unprecedented gains since the COVID-19-induced selloff in March. However, the WGC noted that equity valuations don ’t reflect the true state of the economy.
“While many investors are looking to take advantage of the positive price trend, there is growing concern that such frothy valuations may result in a significant pullback, especially if the economy experiences a setback from a second wave of infections,” the analysts said. “Gold ’s effectiveness as a hedge may help mitigate risks associated with equity volatility.”
While the need for diversification rises every day, the WGC said that the list of perceived safe-haven assets continues to dwindle. Since March, governments and central banks around the world have cut interest rates and pumped massive amounts of liquidity into financial markets in an attempt to stabilize the global economy.
The WGC noted that the current low-interest rate environment is forcing investors, particularly pension funds to take more risk for higher yielding assets.
“Lower rates increase pressure on the ability to match their liabilities and limit the effectiveness of bonds in reducing risk. In this context, investors may consider gold as a viable substitute for part of their bond exposure,” the analysts said.
Along with trying to anticipate the shape of the global recovery, the WGC said that there is growing speculation on the price pressures consumers will see. The analysts noted that gold will do well in extreme inflationary and deflationary environments.