12:30:40 EDT Sun 19 May 2024
Enter Symbol
or Name
USA
CA



Empower Clinics Inc
Symbol EPW
Shares Issued 399,108,658
Close 2023-05-08 C$ 0.01
Market Cap C$ 3,991,087
Recent Sedar Documents

Empower's Kai ceases operations, files for bankruptcy

2023-05-09 12:42 ET - News Release

Mr. Steven McAuley reports

EMPOWER CLINICS PROVIDES CORPORATE UPDATE

Empower Clinics Inc. has provided various corporate updates.

RESEARCH AND CLINICAL TRIALS

The Company announced on April 17, 2023 that its subsidiary EPW Curesearch LLC ("EPWC") has signed an agreement to develop a program for Pharmaceutical Research and Clinical Trials Services (the "Services") with an established specialist medical group based in Dallas, TX (the "Medical Group"), and EPWC has completed a Research Services Agreement ("Research Agreement") with a leading physician and researcher who will act as the Principal Investigator (the "PI") supporting the provision of the Services of the first site in Dallas, TX.

Since then, the Company has signed three additional Research Agreements with PI's bringing the total to four, paving the way to bring on multiple research and clinical trial agreements from sponsors and CRO's.

The Company continues to interview and source additional PI candidates in other states including Florida and California.

STRATEGIC ADVISORY

On March 21, 2023 the Company announced that it has commenced a process to explore and evaluate strategic options to enhance and preserve shareholder value with the engagement of Haywood Securities Inc. ("Haywood") as the Company's strategic financial advisor.

To date, Haywood and the Company have put forth a number of possible initiatives, created a due diligence data room, and have updated investment material to be used in conjunction with opportunity analysis. Together, the Company and Haywood have determined key opportunities exist with Medi+Sure Canada Inc. and The Medi Collective Corp.

The Company has not set a timetable for completion of this process and does not expect to disclose developments with respect to this process unless and until the evaluation of strategic alternatives has been completed or the Company's Board of Directors has concluded disclosure is appropriate or legally required.

MEDI+SURE CANADA INC

The Medi+Sure Canada Inc. business unit continues to operate with a reduced workforce to control costs while processing customer requests and accelerating efforts on account receivable collections. Certain products are currently on back order pending new inventory purchases, and the result of the strategic advisory review.

KAI MEDICAL LABORATORY

Kai Medical Laboratory LLC ("Kai") has ceased operations at its facility in Dallas, TX. Kai has also filed a Chapter 7 bankruptcy filing in the United States Bankruptcy Court Northern District of Texas. A Stay of creditors is effective immediately and an orderly liquidation process will be managed by a court appointed trustee.

The Company also announces that it entered into debt settlement agreements with creditors on May 5th, 2023 for the settlement of debt in the aggregate amount of $90,000 CAD, which was settled through the issuance of an aggregate of 6,000,000 common shares in the capital of the Company (each, a "Share") at a deemed issue price of $0.015 per Share considered (the "Debt Settlement").

All Shares issued pursuant to the debt settlement have been issued with no hold period with prior written consent of the Canadian Securities Exchange. 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.

The Company also announces that it today issued an aggregate of 10,000,000 common shares in the capital of Empower (the "Shares") at a price of $0.05 per Share as discretionary special bonuses issued to two employees. The Shares are subject to a four-months and one-day hold period under applicable securities laws.

The issuance of the Shares is a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and the minority shareholder approval requirement of MI 61-101 since neither the fair market value of the transaction nor the fair market value of the consideration for the transaction exceeds 25% of the Company's market capitalization.

ABOUT EMPOWER:

Empower is an integrated healthcare company with multi-disciplinary clinics, a Canadian medical device company and has launched its first clinical research site becoming a Site Management Organization (SMO) in Dallas, TX. Empower is a leader in integrated healthcare and research solutions and is reshaping the model for patient-first wellness.

We seek Safe Harbor.

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