- Announced that it has entered into a Letter of Intent to form a Joint Venture Partnership with HERITAGE CANNABIS HOLDINGS CORP. (CSE: CANN) in Sandy, OR for the extraction of hemp for CBD oil production, and formulated CBD products
- Heritage, via its wholly owned subsidiary Purefarma Solutions Inc., will install extraction units and related downstream extraction equipment inside Empower’s existing 5,000 sq. ft. licenced hemp processing facility in Sandy, OR.
- JV will be equally funded by both companies with Heritage investing an initial $500,000 for start-up funds, as the build out completes and the JV secures high quality hemp supply from local growers.
VANCOUVER, Sept. 17, 2019 – 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 it has entered into a Letter of Intent (“LOI”) to form a Joint Venture Partnership (“JV”) with HERITAGE CANNABIS HOLDINGS CORP. (CSE: CANN) (“Heritage“) in Sandy, OR for the extraction of hemp for CBD oil production, and formulated CBD products.
Terms of the LOI have Empower and Heritage each with a 50% ownership
of the JV. Heritage, via its wholly owned subsidiary Purefarma Solutions
Inc. (“Purefarma”), will install extraction units and
related downstream extraction equipment inside Empower’s existing 5,000
sq. ft. licenced hemp processing facility in Sandy, OR. In
addition, Purefarma will train and supervise the staff on the
proprietary methods of extraction and oil production that it produces in
Canada. The JV will be equally funded by both companies with Heritage investing an initial $500,000 for start-up funds, as the build out completes and the JV secures high quality hemp supply from local growers.
Once operational, the JV will begin producing proprietary branded
products for Empower’s corporately owned physician staffed health
clinics in Washington State, Oregon, Nevada and Arizona. These clinics include Sun Valley Health (“Sun Valley”), a subsidiary of Empower, which has direct marketing access to over 165,000 patients and growing as Sun Valley expands its franchised network nationwide. The JV will utilize formulations from Heritage in Canada, as well as manufacture proprietary Sollievo branded products that Empower distributes throughout its clinic network.
“By moving forward with Heritage in this JV, it allows us to execute
our growth strategy more quickly and efficiently. We will expand our
clinics and CBD product offerings throughout the USA via our franchise model, as we aim to become a significant part of the cannabis wellness marketplace.” states Steven McAuley, Empower’s Chief Executive Officer.
The JV will also look to manufacture white label products for other distributors throughout the USA,
and it is currently in talks with several potential customers to
produce tinctures, topicals, gel caps and formulated bulk CBD oil.
“This is a big step for Heritage as we expand our unique capabilities south of the border into the USA.
We are fortunate to be working with Empower as they bring distribution,
and a licensed facility which will allow us to begin immediately
filling an order pipeline.” says Clint Sharples, CEO of Heritage “Since our 30% acquisition of Endocanna Health in California,
they have introduced us to many quality opportunities, including this
one with Empower, and are targeting many more in the future.”
Additional HIGHLIGHTS
-
Extraction Facility Progress The Company has been
awarded its hemp-handlers license from the Oregon Department of
Agriculture, and now are approved to operate the new 5,000 sq. ft.
facility in Sandy, OR. Pathangay Architects have been
retained to complete the design and drawings, to submit permit approvals
that commence the next phase of build-out. Security systems and IT
networks have been installed. The Company intends to include these
assets as part of the JV.
-
Hemp Bio-Mass Supply The Company has commenced RFP’s (Request For Proposal’s) to access the more than 1,300 licensed hemp farmers in the State of Oregon, that are known to produce some of the highest quality hemp bio-mass in the United States.
-
CBD Market Demand The passing in the United States of the US$867 billion Agriculture Improvement Act (the “Farm Bill“)
has legalized hemp and hemp-based products. This has created an
opportunity for the production and sale of a variety of CBD-based
products that can provide genuine help and effective relief to millions
of people suffering from a variety of qualifying conditions. Recent
reports and studies indicate the approval of the Farm Bill could create a
US$23 billion industry by 2023
-
Sun Valley Health Franchise Sun Valley Health www.sunvalleyhealth.com
offers a scientific approach to alternative medicine supported by a
network of nine (9) corporate locations and a nationwide franchise
program that offers a turnkey opportunity including:
- An electronic medical system that handles patient data and sensitive
information, and deals with program tracking, referrals, and
appointment reminders
- A proven operational system that has 165,000 patients in its database
- A retail CBD and premium wellness product offer to diversify and attract customers
- An industry leading campaign management system using text messaging,
email and call center systems to engage patients and customers
- Paperless communication channels that are HIPAA compliant
- On-site and web-based training systems to develop franchisees
- Sophisticated advertising programs proven to connect with local customers
- Support and infrastructure to ensure franchisees have a formula for success
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.
About Heritage Cannabis Holdings Corp.
The Company is a vertically integrated cannabis provider that
currently has two Health Canada approved licenced producers, through its
subsidiaries Voyage Cannabis Corp. and CannaCure Corp. both regulated
under the Cannabis Act Regulations. Working under these two licences,
Heritage has two additional subsidiaries, Purefarma Solutions, which
provides extraction services, and BriteLife Sciences that is focused on
cannabis based medical solutions. Heritage as the parent Company, is
focused on providing resources for its subsidiaries to advance their
products or services to compete both domestically and internationally.
ON BEHALF OF THE BOARD OF DIRECTORS:
Steven McAuley
Chief Executive Officer
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 terms of the proposed JV 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 the hemp-based CBD extraction facility may not be fully
operation in 2019 if at all; 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 JV 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.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2019/17/c9158.html
Investors: Steve Low, Boom Capital Markets, [email protected], 647-620-5101; Investors: Steven McAuley, CEO, [email protected], 604-789-2146Copyright CNW Group 2019