VANCOUVER BC: March 13th, 2019 – EMPOWER CLINICS INC. (CSE: EPW) (Frankfurt 8EC) (“Empower” or the “Company”) a growth oriented and diversified medical cannabis company, is pleased to provide an update to recent corporate activities after announcing acquisitions and partnerships intended to re-shape the profile of the Company going forward.
The Company has reached a number of important milestones over the past eight weeks as we continue to re-shape the path forward striving to become a global health & wellness company, serving the needs of patients through our network of physician-staffed health and pain management clinics and CBD Extraction operations.
- Launch of CBD Extraction Facility The Company intends to open a fully functioning hemp-based CBD extraction facility in greater Portland, Oregon in 2Q 2019 with the first extraction system having the capacity to produce 6,000kg of extracted product per year with current CBD extract wholesale pricing at $6,500.00 USD per kilogram. Empower has entered into a non-binding term sheet with Aibeida LifeTech Limited (“Aibeida”), whereby Aibeida will sell and license specialized extraction equipment to Empower, provide facility build-out and set-up services, complete licensing & permitting requirements, equipment set-up, testing and activation plus provide ongoing facility management, production and maintenance for the first Empower CBD extraction facility. Aibeida’s Director and Chief Scientist Dr. Shuang Xie, PhD. Chemist, Queens University in Canada will oversea and manage the Empower CBD extraction project providing Empower with vertical integration into the CBD supply chain producing world class isolates, distillates and crude oil that have shown superb third party test results in the initial test facility.
- The Sun Valley Clinic Locations Empower entered into a non-binding term sheet to acquire the business of Sun Valley Certification Clinics Holdings LLC (“Sun Valley”), including its interests in certain affiliates thereof, by way of a share or asset acquisition, subject to due diligence and customary closing conditions. Sun Valley operates a network of professional medical cannabis and pain management practices, with five clinics in Arizona, one clinic in Las Vegas, a tele-medicine platform serving California, and a fully developed franchise business model for the domestic cannabis industry, which is believed to be the first of its kind in the United States. Sun Valley clinic locations are as follows:
4218 W Dunlap Ave, Phoenix, AZ
12801 W Bell Rd #145, Surprise, AZ
4015 E Bell Rd #130, Phoenix, AZ
2011 E University Dr, Mesa, AZ
7074 E Speedway Blvd, Tucson, AZ
2550 S Rainbow Blvd, Las Vegas, NV
- Focus on CBD Product Sales Empower has commenced selling it’s proprietary line of CBD based products called SOLLIEVO, through its network of company owned clinics in the U.S. Empower’s patient base and customers are expected to benefit from access to high margin derivative products, including CBD lotion, tinctures, spectrum oils, capsules, lozenges, patches, e-drinks, topical lotions, gel caps, hemp extract drops and pet elixir hemp extract drops. Patients and customers will be able to access Empower’s world-class customer service, home delivery and e-commerce platform.
- CBD Market Demand The passing of the US$867 billion Agriculture Improvement Act (the Farm Bill) has legalized hemp and hemp-based products. This has created a massive opportunity for the production and sales of a variety of CBD based products that can provide genuine help and effective relief to millions of people suffering from a variety of serious qualifying conditions. Recent reports and studies indicate the approval of this bill could create a US$20 billion industry by 2022.
- Increased Patient Access With a rapidly expanding company-owned clinic network and significant expansion opportunity through the Sun Valley franchise model, Empower anticipates it will grow its total patient list substantially in the years ahead. This is expected to provide greater opportunity for treatment analysis using artificial intelligence (AI), validating the Company as a leader in understanding the efficacy of cannabis-related therapies.
- Market Leading Technology Empower utilizes a market-leading patient electronic management and POS system that is HIPAA compliant and provides deep insight to patient care. The Company supports remote patients using its tele-medicine portal, enabling patients who do not live near one of its clinic locations, or are disabled or unable to come to a location, to still benefit from a doctor consultation.
“We have made considerable progress over the past eight weeks as we work to diversify and expand the company profile,” said Steven McAuley, CEO of Empower. “We continue to move aggressively toward establishing a diversified and vertically integrated CBD focused company that has an expanding network of physician-staffed medical clinics offering support to our many thousands of patients.”
The Company is also pleased to announce the appointment of Mr. Mathew Lee as Chief Financial Officer (“CFO”) effective March 11th, 2019. Mr. Lee is a Chartered Professional Accountant with a Bachelor of Commerce Degree from the University of British Columbia and is a member of the Chartered Professional Accountants of British Columbia. Mr. Lee brings a breadth of financial experience in both public and private company operations across various sectors, including mineral resources, cannabis and financial services. Along with the appointment of Mr. Lee, Empower has engaged Invictus Accounting Group LLP to support its public financial reporting and compliance needs. Invictus is a well-regarded Vancouver, B.C. based advisory firm with expertise in accounting services, corporate finance, controllership, due diligence, ERP, financial reporting, internal controls compliance and tax compliance. We look forward to the support of Mr. Lee and Invictus as we grow the business together.
“We are extremely pleased to be adding significant bench strength with Mathew Lee joining our leadership team and bringing aboard the diversified financial and accounting support of the Invictus Accounting Group,” said Steven McAuley, CEO of Empower. “I would like to thank the existing team, our Board & Advisors and our shareholders for all their support during this transition phase.”
Empower is a leading owner/operator of a network of physician-staffed clinics focused on helping patients improve and protect their health through innovative uses of medical cannabis. Treatment solutions are focused on education, data and efficacy in combination with other modalities to support patients with serious qualifying conditions, such as chronic pain, PTSD, sleep disorders, opioid dependency, epilepsy and more. It is expected that Empower’s proprietary product line “Sollievo” will offer patients a variety of delivery methods of doctor recommended cannabidiol (CBD) based product options in its clinics, online and at major retailers. With over 120,000 patients, an expanding clinic footprint, a focus on new technologies, including tele-medicine and an expanded product development strategy, Empower is undertaking new growth initiatives to be positioned as a vertically integrated diverse market-leading service provider for complex patient requirements in 2019 and beyond.
ON BEHALF OF THE BOARD OF DIRECTORS:
Chief Executive Officer
Investors: Steve Low
Boom Capital Markets
Investors: Steven McAuley
DISCLAIMER FOR FORWARD-LOOKING STATEMENTS
This news release contains certain “forward-looking statements” or “forward-looking information” (collectively “forward looking statements”) within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Forward-looking statements can frequently be identified by words such as “plans”, “continues”, “expects”, “projects”, “intends”, “believes”, “anticipates”, “estimates”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. Forward-looking statements in this news release include, but are not limited to, statements regarding the expected terms of the Financing and the use of proceeds thereof. Such statements are only projections, are based on assumptions known to management at this time, and are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including that the Company may be unable to complete the Financing on the terms expected or at all; that the Company may deem it necessary to allocate the proceeds of the Financing other than as provided herein; and other factors beyond the Company’s control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are cautioned not to place undue reliance on the forward-looking statements in this release, which are qualified in their entirety by these cautionary statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements in this release, whether as a result of new information, future events or otherwise, except as expressly required by applicable laws.