Over the last several days, we’ve highlighted a newly listed outfit that is taking a big data approach to medical marijuana consultation clinics and, in doing so, has quickly racked up 15,000 patients.
Canabo Medical (CMM.V) is a ten outlet health clinic chain that doesn’t work on a vendor-commission model, rather it serves as a place for prospective and existing patients to come get a full medical consultation and education appointment, just as they would with their GP. The difference here is, the doctors seeing the patient are fully trained and updated on industry best medical marijuana care, treatment and dosages, and the background medical records and data that come with the patient is then used to fuel ongoing study into marijuana treatment options.
Today’s news from Canabo announced the company has signed a letter of intent (LOI) with Peak Pulmonary Consulting in Alberta, where Peak will now offer medical marijuana treatments and consulting using a new subsidiary, CieloMed.
Says a Canabo news release Monday:
Under the terms of the agreement, Peak Medical Group will provide physicians and clinic space to assess up to 20,000 new patients under Canabo medical marijuana assessment, prescribing, educational procedures and protocols. Training for up to 60 Peak Medical Group physicians and educators in Canabo’s proprietary training protocols will begin immediately. All resulting patients under this agreement will also be enrolled in Canabo’s medical data collection program.
How this deal comes together in practice is just a little bit tricky, so bear with me.
Peak will run the show. They’ll provide clinics and doctors and patients. Canabo will train said physicians and send Peak $1.6m in CMM.V shares for their trouble, and receive all the patient data that comes through the service, to add to their existing 15,000 patient data.
When CieloMed hits 20,000 patients enrolled – or in six years, whichever happens first – CieloMed transfers to Canabo’s ownership.
CMM stock didn’t take a wild leap on the news, even though Canabo will now be offering access to up to 20 clinics, to patients and their doctors, across Canada. The reason for that is, likely, there will be a delayed return for Canabo, financially.
Pain clinics aren’t a sexy sub-sector for the weed investor traditionally, but this one is being run in a way that avoids the traps of commission-based referrals, and instead focuses on providing a service most GPs still refuse to offer; proper and responsible (and knowledgeable) medical marijuana treatment.
CMM insiders tell me they’re adding around a thousand new patients every month right now, but this deal will accelerate that substantially. If you think the dollar potential on Canabo is the consulting with patients, it’s probably not a sweet deal in your eyes. But if, like me, you think the big data component of what they’re doling is where the gold will be found, this is a crazy great deal and, likely, a model for more to come.
— Chris Parry
FULL DISCLOSURE: Canabo Medical (CMM.V) is an Equity.Guru marketing client, and the author has purchased stock on the open market.