AGORACOM Small-cap Investor Relations Blog

• Announced that its Sun Valley Health division has sold it’s first franchise territory in the United States
• first Sun Valley Health Franchise territory has been sold in Tulsa, Oklahoma, to a highly skilled entrepreneurial couple, with an extensive professional background that includes 20 years of owning and operating a health & wellness center.

VANCOUVER, BC / January 23, 2020 / EMPOWER CLINICS INC. (CSE:CBDT)(OTC:EPWCF)(Frankfurt:8EC) (“Empower” or the “Company“), a vertically integrated and growth-oriented CBD life sciences company is pleased to announce that its Sun Valley Health division has sold it’s first franchise territory in the United States.

The first Sun Valley Health Franchise territory has been sold in Tulsa, Oklahoma, to a highly skilled entrepreneurial couple, with an extensive professional background that includes 20 years of owning and operating a health & wellness center.

“The Sun Valley Health team have developed a robust pipeline of strong franchise candidates in multiple states across the U.S., who are all advocates of the medical cannabis clinic model.” said Steven McAuley, Chairman & CEO of Empower. “Completing the sale of our first franchise sets the stage for our next phase of growth, introducing our turnkey business model to likeminded people throughout the country.”

The state of Oklahoma is a medical cannabis state that has gone from non-existent to one of the largest and most valuable cannabis markets in the nation. Oklahoma’s launch far outpaces that of other medical cannabis markets including Illinois, Maryland and Ohio with sales figures more akin to a recreational launch.

Marijuana Business Daily indicates that patient counts have skyrocketed throughout 2019 with nearly 210,000 as of November 1st with more than 5% of Oklahoma’s population now registered as medical cannabis patients, exceeding any other program in the nation. Under State Question 788, the bill legalizing medical cannabis in Oklahoma:

• There are no caps on the number of business licenses that can be awarded.
• Doctors are allowed to recommend the product for any condition they deem fit.
• Municipalities are prohibited from enacting zoning restrictions to prevent dispensaries from opening.

A Sun Valley Health Franchise provides a franchisee “A Scientific Approach To Alternative Medicine” with a protected territory and access to potential patients and consumers with a geo-fenced population zone.

Franchisees pay an upfront franchise fee to Sun Valley Health based on the territory location and population index, plus an ongoing monthly royalty based on franchisee revenue, they pay a variable monthly technology and marketing support fee plus they are required to purchase the various Sun Valley Health CBD product lines for their clinic location.

Sun Valley Health provides a fully turnkey business plan with complete technical and marketing support, based on over six years of successful operating experience.

“Oklahoma is now the fastest growing medical marijuana market in the country and we are fortunate to find such great partners who believe in our vision, and are in a position to take advantage of such a robust market,” said Dustin Klein, SVP Business Development.

The Company also announces that it has entered into debt settlement agreements with creditors for the settlement of debt in the aggregate amount of $240,000 CAD, which is to be settled through the issuance of an aggregate of 4,800,000 common shares in the capital of the Company (each, a “Share”) at a deemed issue price of $0.05 per Share (the “Debt Settlement”). As the Company’s Chairman and Chief Executive Officer and SVP, Business Development and Board member both participated in the Debt Settlement, it is considered to be a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).

The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61- 101, based on a determination that the securities of the Company are only listed on the CSE and that the fair market value of the Shares issued in connection with the Debt Settlement does not exceed $2,500,000 or 25% of the market capitalization of the Company. As the material change report disclosing the Debt Settlement is being filed less than 21 days before the transaction, there is a requirement under MI 61 101 to explain why the shorter period was reasonable or necessary in the circumstances.

In the view of the Company it was necessary to immediately close the Debt Settlement and therefore, such shorter period was reasonable in the circumstances.

All Shares issued pursuant to the Debt Settlement will be subject to a statutory four month and one day hold period from the date of issue in accordance with applicable Canadian securities laws. None of the Shares will be registered under the United States Securities Act of 1933, as amended, and none may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT EMPOWER

Empower is a vertically-integrated health & wellness brand with it’s first hemp-derived CBD extraction facility under development, the Company produces its proprietary line of cannabidiol (CBD) based products and distributes products through company owned and franchised clinics, with wholesale partnerships, online channels and with new retail opportunities nationwide in the U.S. The company is a leading multi-state operator of a network of physician-staffed wellness clinics, focused on helping patients improve and protect their health, through innovative physician recommended treatment options. The company has commenced activity on how to connect its significant data, to the potential of the efficacy of alternative treatment options related to hemp-derived cannabidiol (CBD) therapies.

ON BEHALF OF THE BOARD OF DIRECTORS:

Steven McAuley
Chief Executive Officer

CONTACTS:

Investors: Steven McAuley
CEO
[email protected]
604-789-2146

Investors: Dustin Klein
SVP, Business Development
[email protected]
720-352-1398

For French inquiries: Remy Scalabrini, Maricom Inc., E: [email protected], T: (888) 585-MARI

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 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. 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.

SPONSOR:

Why Empower Clinics

• A leading owner/operator of physician staffed health and pain management clinics.
• Patient database of over 165,000 patients 
• Platform generating $1.4M USD (9 months ending Sept. 30, 2019)
• Proprietary technology platforms including Electronic Health Records portal and e-Commerce for CBD product distribution
• Recently launched CBD extraction facility
• First extraction system capacity = 6,000 Kg per year.
• CBD based products are poised to be a $20B global industry by 2022
• Medical cannabis is poised to be a $100B global industry by 2025

Global pot execs descend on Davos for cannabis conference

• Cannabis executives will be touching down in Davos, Switzerland for the second year in a row as the industry looks to influence some of the participants of this year’s World Economic Forum.

Bloomberg News reports that one of the sponsors of the Davos “Cannabis House” aims at having a more formal and professional presence at the event than last year. Some of the topics that will be discussed include sustainability, climate change, social equity and impact investing. Speakers from Israel, Switzerland and Asia will also be present, ensuring that the two-day conference isn’t rife with commentary from executives in North America, which has so far been the epicentre of the legal cannabis space.

Source: BNN Bloomberg – http://links.mkt2011.com/servlet/MailView?ms=MzEwNTgyMzQS1&r=MjU5OTkyNTIyMjg1S0&j=MTYyNDIwMzk2MwS2&mt=1&rt=0

SPONSOR:

Why Empower Clinics

• A leading owner/operator of physician staffed health and pain management clinics.
• Patient database of over 165,000 patients 
• Platform generating $1.4M USD (9 months ending Sept. 30, 2019)
• Proprietary technology platforms including Electronic Health Records portal and e-Commerce for CBD product distribution
• Recently launched CBD extraction facility
• First extraction system capacity = 6,000 Kg per year.
• CBD based products are poised to be a $20B global industry by 2022
• Medical cannabis is poised to be a $100B global industry by 2025

——–

Lawmakers press Trump officials to change federal marijuana rules

By Nathaniel Weixel – 01/15/20 04:40 PM EST

• House lawmakers are growing increasingly frustrated with restrictions on federal marijuana research and are putting pressure on regulators to change the rules.

• While 33 states have legalized marijuana for medicinal purposes, federal research is extremely restricted.

During a House Energy and Commerce Health Subcommittee hearing Wednesday, bipartisan lawmakers pressed officials from the Food and Drug Administration, Drug Enforcement Administration (DEA) and National Institute on Drug Abuse about obstacles to studying the safety and effectiveness of cannabis products, including hemp-based cannabidiol. 

“States’ laws and federal policy are a thousand miles apart. As more states allow cannabis, the federal government still strictly controls and prohibits it, even restricting legitimate medical research,” said subcommittee Chairwoman Anna Eshoo (D-Calif.).

All of the administration officials at the hearing agreed the current studies on the benefits and health consequences of marijuana are inadequate. However, they indicated that changes are not going to be immediately forthcoming, as more studies are needed.

Marijuana is a Schedule I drug, meaning it is in the same category as drugs like heroin and LSD. According to the federal government, it has a high potential for abuse and no accepted medical value.

Drug schedules were first established by former President Nixon as part of the 1970 Controlled Substances Act. Marijuana was put into Schedule I at that time, and has remained there ever since. 

Democrats expressed frustration at the hurdles potential researchers have to overcome. 

“Federal prohibition has failed, from our criminal justice system to our health care system to our state and local governments that are forced to navigate an impossible landscape,” said Rep. Joe Kennedy III (D-Mass.).

Researchers need approval from three separate agencies, which can sometimes take upwards of a year. Once approved, they’re only allowed to research cannabis grown by a government-authorized farm at the University of Mississippi. 

That facility has been the sole grower of federally approved marijuana since 1968. 

Researchers and lawmakers from both parties have said the single source is too limiting, but experts said officials across multiple administrations have not provided an adequate reason why marijuana research is so restricted. 

“Researchers are in a catch-22. They can’t conduct cannabis research until they show cannabis has a medical use, but they can’t show cannabis has a medical use until they can conduct research,” Eshoo said.

DEA senior policy adviser Matthew Strait said the agency is aware of the limitations, and has drafted new regulations that would allow additional marijuana growers. 

The DEA in August announced it would begin taking steps to expand the number of federally approved marijuana growers, but it first needed to develop new regulations to evaluate the applications.

Strait said the agency has drafted those rules and submitted them to the White House for regulatory review. Agency staff will be on a call tomorrow to discuss them, he said.  

Strait was also pressed about removing marijuana from the list of controlled substances. 

The DEA has the authority to change the scheduling of marijuana, or completely remove it from the list of controlled substances without input from Congress, but it has yet to do so. 

Advocates are pushing the House to pass the Marijuana Opportunity, Reinvestment and Expungement Act, which would deschedule marijuana. 

But some Republicans expressed concern about completely removing marijuana from the controlled substances list. Instead, they indicated an openness to changing its schedule to make it easier to research.

“Descheduling cannabis is a step too far and one I would not support,” said Rep. Greg Walden (Ore.), the top Republican of the full committee. Any discussion of descheduling must be preceded by a fuller understanding of the potential risks associated with cannabis use — which we currently do not have.”

Walden added that rescheduling cannabis may help improve the research landscape.

“We need more research and better data. Americans are consuming more cannabis and policy decisions on this substance have been made in a virtual information vacuum,” Walden said.

Source: https://thehill.com/policy/healthcare/478472-lawmakers-press-trump-officials-to-change-federal-marijuana-rules

SPONSOR:

Why Empower Clinics

• A leading owner/operator of physician staffed health and pain management clinics.
• Patient database of over 165,000 patients 
• Platform generating $1.4M USD (9 months ending Sept. 30, 2019)
• Proprietary technology platforms including Electronic Health Records portal and e-Commerce for CBD product distribution
• Recently launched CBD extraction facility
• First extraction system capacity = 6,000 Kg per year.
• CBD based products are poised to be a $20B global industry by 2022
• Medical cannabis is poised to be a $100B global industry by 2025

Expert Offers Predictions For The Hemp-Derived CBD Market in 2020

By: Iris Dorbian

It was exactly a year ago that the Farm Bill legalized CBD and hemp, the latter a cousin to cannabis as it comes from the same plant. Of course, there were specified guidelines, such as hemp can be sold as long as the maximum THC (the psychoactive compound in cannabis that gives users their high) count is .3 percent; anything that contains more will be federally classified as illegal marijuana.

The legalization has spawned a booming cottage industry. But just like with the federally illegal cannabis market, problems proliferate for CBD and hemp entrepreneurs. For one thing, many vendors, retailers, advertisers, manufacturers and banks are still not fully apprised that hemp, for instance, is legal. Because of this misunderstanding, these prospective partners balk at working with hemp entrepreneurs, thinking they’ll be subject to the same penalties they would working with cannabis businesses.

CBD has not been immune to these setbacks, either. Despite its legality, the FDA has clamped down on businesses that sell CBD as food additives or label it as a dietary supplement. According to the food watchdog, CBD’s safety for use in human or animal food is inconclusive, requiring more data until proven otherwise.

In a press release, Patrick McCarthy, CEO and co-founder of ValidCare, a provider of market intelligence and research for the hemp-derived product industry, offered a few intriguing predictions for the space in 2020. Do you agree? Please let me know.

Safety Product Assurance

“Today’s consumer cares about where the products they put in, and on, their bodies come from. From big breweries to boutique ice creams, mainstream brands showcase their farmers in their advertising and market organic, cruelty-free and hyper-local manufacturing practices on their packaging to assure consumers their products are natural, safe and worth a premium price. This trend will hit the hemp industry next, as consumers demand information on plant origin, farming practices, product composition and sustainability.”

Baby Boomer Consumption Escalates

“The AARP crowd is one of the largest demographics using hemp-derived CBD for chronic joint pain and sleep. Expect this trend to increase as Boomers seek to replace prescription and OTC pharmaceuticals with hemp-derived products — and to lobby for coverage and/or reimbursement through FSAs, HSAs and supplemental MediCare policies.”

Hemp As Mental Health Aid

“Today, one in five Americans report they use hemp-derived CBD for ‘mental health reasons’ such as anxiety. In 2020, we’ll see even more people ditch Prozac prescriptions for non-impairing hemp-derived CBD to support their mental health goals. Expect brands targeting this audience to commission research on hemp-derived CBD’s functional benefits for mental health.”

Paving The Way For Minor Supplements

“CBD was this decade’s craze, but as the market for cannabidiol becomes oversaturated, product companies will introduce other interesting minor cannabinoids like CBN and CBG, already touted as having functional benefits tied to sleep and appetite. Expect the FDA to voice concerns about these ‘cannabis derived compounds’ and mirror its communication to industry and the public about the need for these products to be properly vetted for safety and use – and for product companies to market them nonetheless.”

Invasion of the Great White North

“Last year we witnessed a number of marijuana companies diversifying products and risks by introducing hemp-based wellness lines. In 2020, expect our Northern neighbors to take advantage of the depressed financial market and invest or buy U.S.-based hemp companies as a way to enter the U.S. market.”

Have a very happy and healthy New Year!

Source: https://www.forbes.com/sites/irisdorbian/2019/12/27/expert-offers-predictions-for-the-hemp-derived-cbd-market-in-2020/#447564bb1391