VANCOUVER B.C.: July 28, 2020 – EMPOWER CLINICS INC. (CSE: CBDT) (OTC: EPWCF) (Frankfurt 8EC) (“Empower” or the “Company”) has filed today its unaudited interim condensed consolidated financial statements and related management’s discussion and analysis, both of which are available at www.SEDAR.com. All financial information in this press release is reported in United States dollars, unless otherwise indicated.
“Our strong Q1 2020 performance is a direct reflection of the numerous changes and improvements from 2019, setting in motion a framework for sustained growth.” said Steven McAuley, Chairman and CEO. “Our Sun Valley Health division started the year with record patient visits and now offers more diversified wellness services, adding new revenue sources and a more diversified business model.”
Q1 2020 Highlights
- 5,717 patient visits generating total revenue of $789,135, compared to 1,198 patient visits generating $152,846 for Q1 2019.
- Net loss of $524,208 or $0.00 per share, compared to $398,541 or $0.01 per share for Q1 2019, which was primarily driven by increased non-cash accretion expense.
- Cash provided by operating activities was $13,864, compared to cash used by operating activities of $219,212 for Q1 2019.
- Cash at March 31, 2020 of $131,808, compared to cash of $179,152 at December 31, 2019.
Recent Highlights Subsequent to Quarter End
- Private Placement: Empower Clinics closes private placement of $653,000 CAD in April 2020 and $720,866 CAD in July 2020 to support growth initiatives.
- Psychedelics Division: May 2020 Empower enters into a term sheet to acquire an interest in the global royalty rights of Dosed Movie, launches Dosed Wellness, a psychedelics brand, launches new dedicated website dosedwellness.comand adds new team members dedicated to the new brand.
- COVID-19 Testing: April 2020 the Company launches a four-phase roll-out of COVID-19 testing in clinics and onsite for businesses.
- Cannvas Education Platform: May 2020 Empower and EuroLife Brands complete definitive agreement for multi-year, multi-national licence of EurolIfe’s cannvas.me web-based education technology platform to deliver brand, product, and industry knowledge to the market.
Financial Summary
| $, except where noted | Three months ended March 31 | ||
| 2020 | 2019 | ||
| Patient visits (#) | 5,717 | 1,198 | |
| Clinic Revenues | 767,803 | 152,846 | |
| Direct Clinic Expenses | 256,422 | 39,413 | |
| Loss from operations | (317,831) | (279,308) | |
| Net loss | (524,208) | (398,541) | |
| Net loss per share | (0.00) | (0.01) | |
Financial Performance
Clinic revenues for Q1 2020 and Q1 2019 were $767,803 and $152,846, respectively. This increase above prior year is attributable to the acquisition of Sun Valley and the addition of 5 clinics which drove an increase in patient count from 1,198 in Q1 2019 to 5,717 in Q1 2020.
Direct clinic expenses for Q1 2020 and Q1 2019 were $256,422 and $39,413, respectively. This increase above prior year is attributable to the increase in number of patient visits.
Net loss from operations for Q1 2020 and Q1 2019 were $317,831 and $279,308, respectively. This increase above prior year is primarily attributable to an increase in salaries and benefits with the acquisition of Sun Valley. This decrease was partially offset by an increase in clinic revenues with the acquisition of Sun Valley.
Net loss for Q1 2020 and Q1 2019 were $524,208 and $398,541, respectively. This increase over prior year is primarily attributable to non-cash accretion expense related to the convertible debentures.
During the three months ended March 31, 2020, the Company generated $13,864 in cash from operations after changes in non-cash working capital. The Company used $61,209 for payment of lease liabilities.
Please refer to the Company’s unaudited condensed interim consolidated financial statements for the three months ended March 31, 2020 and 2019, and accompanying Management Discussion and Analysis for a full review of the operations.
About Empower
Empower is a vertically integrated health & wellness company with a network of corporate and franchised health & wellness clinics in the U.S. The Company is focused on helping patients improve and protect their health, through innovative physician recommended treatment options. The Company has launched Dosed Wellness Ltd. to connect its significant data, to the potential of the efficacy of alternative treatment options related to hemp-derived cannabidiol (CBD) therapies, psilocybin and other psychedelic plant-based treatment options.
ON BEHALF OF THE BOARD OF DIRECTORS:
Steven McAuley
Chief Executive Officer
CONTACTS:
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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 statements regarding: the Company’s expected timing of filing of its Annual Filings, the Company’s intention to create psilocybin and psychedelics divisions, that market research on advancements in psilocybin and psychedelics in North America and globally will create greater shareholder value, the Company’s intention to open a hemp-based CBD extraction facility, the expected benefits to the Company and its shareholders as a result of the proposed acquisitions and partnerships; the effectiveness of the extraction technology; the expected benefits for Empower’s patient base and customers; the benefits of CBD based products; the effect of the approval of the Farm Bill; the growth of the Company’s patient list and that the Company will be positioned to be a market-leading service provider for complex patient requirements in 2019 and beyond; the ability of the Company to complete or execute phases One, Two, Three or Four of COVID-19 test programs, and Psychedelic substances remain illegal in most countries, so please reference your local laws in relation to medical or recreational use. 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 not open a hemp-based CBD extraction facility; that legislative changes may have an adverse effect on the Company’s business and product development; that the Company may not be able to obtain adequate financing to pursue its business plan; general business, economic, competitive, political and social uncertainties; failure to obtain any necessary approvals in connection with the proposed acquisitions and partnerships; 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.