CBII stock is in the green today after CB2 Insights Inc (CSE:CBII) (OTCQB:CBIIF) announced a warrant exercise incentive program that has been designed to encourage the exercise of the company’s outstanding warrants.
CB2 Aims to Generate Short-Term Capital
In a move to generate some short-term cash inflow, the company is hoping to raise approximately $1.06 million CAD from out of the money stock warrants that are still some time away from being exercised. The approximately 11.8 million warrants in question are set to expire between December 19 of this year and February 15, 2022, and will have an exercise price between $0.50 and $0.80. As part of the incentive, these warrants will be exercisable at a price of $0.09 from December 11 until December 26, 2019. CBII stock is up 5.5% on the news.
“We are excited that CB2 Insights now has a clear cost structure that gives us full line of sight to hit profitability in Q1 2020,” said Prad Sekar, CEO of CB2 Insights. “The proceeds that will be raised from this program will allow us to manage through the seasonal pressures of our clinical operations while we continue expanding and accelerating the growth of our research and data business units.” CBII stock is currently trading for $0.095.
Tough Year for CBII Stock
2019 has been a tough year for the cannabis analytics firm, with CBII stock dropping from a March peak of $0.395 to just $0.085 in October. However, recent weeks have shown signs of recovery in the share value, which has been boosted by several international expansions. Just last week, the company announced that it had partnered with the first fully licensed Colombian cannabis cultivator. Under that deal, CB2 Insights will design a clinical trial to support the future deployment of FCM products in Colombia, where medicinal cannabis remains illegal.
Back in September, CBII stock gained 5% after announcing that it was expanding its market presence in the UK by leasing its technology to MyAccess Clinics (MAC), which operates several clinics in the UK for patients seeking medicinal cannabis care due to conventional treatments being ineffective.
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