AGORACOM Small-cap Investor Relations Blog

• Empower July 2020 patient volume surpasses 2,300 patients with Sun Valley Health increasing revenue per patient by 29%,
• Adds 426 COVID-19 patient tests in July 2020 pilot testing program

VANCOUVER, BC / AUGUST 11, 2020 / EMPOWER CLINICS INC. (CSE:CBDT) (OTCQB:EPWCF) (Frankfurt:8EC) (“Empower” or the “Company“), a life sciences company, is pleased to announce the Company continues to execute on its plan to diversify revenue sources with 2,317 patient visits in July 2020 with record revenues coming from medical cannabis certifications, naturopathic consultations, product sales, identification card production and COVID-19 testing services.

“Diversification of revenue sources utilizing the strength of our clinic, physician, technology and operational assets has been a mission of ours.” said Steven McAuley, Chairman & CEO of Empower. “To see our team, deliver record performance in such a challenging environment, validates our execution strategy, validates the daily commitment of our team members and demonstrates we are on the right path to delivering significant shareholder value.”

The Arizona Department of Health Services announced yesterday its Phased Reopening Plan for Paused Industries indicating that community spread remains: Substantial based on the status of three main criteria: 1) Cases per 100,000 individuals: Substantial, 2) Percent positivity: Substantial, and 3) Hospital visits for COVID-like illnesses in the region: Substantial.

A dashboard available at azhealth.gov/businessCOVID19 indicates whether counties meet the recommended benchmarks for reopening of gyms, movie theaters, waterparks, tubing venues, and bars.

Further information is available at:

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. The Company conducts COVID-19 testing in its clinics under a four-phase national launch in the United States.

ON BEHALF OF THE BOARD OF DIRECTORS:

Steven McAuley
Chief Executive Officer

CONTACTS:

Investors: Steven McAuley
Chairman & 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 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 Empowers 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.

SOURCE: Empower Clinics Inc.

– 15,920 patient visits generating total revenue of $2,031,581 or $0.02 per share, compared to 7,607 patient visits generating $1,091,386 or $0.02 per share for fiscal 2018.

VANCOUVER, BC /July 24, 2020 / EMPOWER CLINICS INC. (CSE:CBDT)(OTC PINK:EPWCF)(Frankfurt:8EC)(“Empower” or the “Company“) has filed today its audited 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.

“2019 is defined by profound change for our Company setting the stage for the ongoing transition to a growth-oriented health & wellness brand, with substantially improved operating controls and improved cost structure.” said Steven McAuley, Chairman and CEO. “As we look ahead navigating a global pandemic, we find ourselves thriving, hiring and seeing patients in record numbers, further supporting our diversification to broader wellness services.”

2019 Highlights

• 15,920 patient visits generating total revenue of $2,031,581 or $0.02 per share, compared to 7,607 patient visits generating $1,091,386 or $0.02 per share for fiscal 2018.

• Net loss of $4,301,663 or $0.04 per share, compared to $3,789,918 or $0.06 per share for fiscal 2018, which was primarily driven by the recognition of goodwill and intangible asset impairment losses related to the Sun Valley acquisition which arose due to changes in Arizona licensing requirements.

• Cash used in operating activities was $2,273,188 or $0.02 per share, compared to $2,835,711 or $0.04 per share for fiscal 2018.

• Cash at December 31, 2019 of $179,153, compared to cash of $157,668 at December 31, 2018.

Recent Highlights Subsequent to Year End

• Private Placement: April 2020 Empower Clinics closes private placement of $653,000 CAD 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 www.dosedwellness.com and 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.

• Private Placement: July 2020 Empower Clinics closes private placement of $720,866 to support growth initiatives.

Financial Summary

Financial Performance

Clinic revenues for Q4 and full year 2019 were $542,677 and $1,949,549, respectively, compared to Q4 and full year 2018 revenues of $196,909 and $1,091,386, 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 7,607 in fiscal 2018 to 15,920 in fiscal 2019.

Direct clinic expenses for Q4 and full year 2019 were $615,814 and $826,276, respectively, compared to Q4 and full year 2018 direct clinic expenses of $115,655 and $417,047, respectively. This increase above prior year is attributable to the increase in number of patient visits.

Net loss from operations for Q4 and full year 2019 were $1,132,784 and $3,680,060, respectively, compared to Q4 and full year 2018 net loss of $592,899 and $4,309,373, respectively. This decrease below prior year is primarily attributable to the increase in net clinic revenues. While there was an increase in salaries and wages with the acquisition of Sun Valley, this increase was offset by a decline in share-based payments and legal and professional fees.

Net loss for Q4 and net loss for the full year 2019 were $1,942,084 and $4,301,663, respectively, compared to Q4 and full year 2018 net income of $1,342,930 and net loss of $3,789,918, respectively. This increase over prior year is primarily attributable to the recognition of goodwill and intangible asset impairment of $2,377,397 and $93,757, respectively. Partially offsetting these one-time expenses is an increase in the gain recognized on the warrant liability and conversion feature associated with the convertible debentures that resulted from the decrease in the Company’s share price and therefore the value of the warrants and convertible debentures exercisable.

During the year ended December 31, 2019, the Company used $2,273,188 in cash from operations after changes in non-cash working capital. The Company invested $3,828 towards property and equipment and raised $3,085,819 via proceeds from various issuances of shares, notes, and convertible debentures.

Please refer to the Company’s audited consolidated financial statements, related notes 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:

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 direction and growth prospects of the Company, the expansion of the company’s clinic and distribution network, the expected effect of the Vendors in their new roles with the Company, the effect on the lives of patients, the growth into a national brand, the effect of the Transaction, the diversification of the Company’s business model, the potential appeal to shareholders, the growth of the Company’s patient list and the effect thereof, the expected benefits for the company’s patient base and customers, the release of the cash consideration, the release of Shares being held in escrow in connection with the Transaction and statements regarding the Company’s proprietary product line “Sollievo”. 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 be able to expand, that the Transaction may not have the expected results, 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.