Mr. Steven McAuley reports

EMPOWER CLINICS PROVIDES CORPORATE UPDATE

Empower Clinics Inc. has provided various corporate updates.

Cease trade order

On Aug. 15, 2023, the B.C. Securities Commission issued a bulletin announcing Empower is suspended pursuant to Canadian Securities Exchange Policy 3. The suspensions are considered regulatory halts as defined in National Instrument 23-101 (Trading Rules), and accordingly, a cease trade order has been put in place on the Canadian Securities Exchange.

The regulatory halt is a result of the company currently being late to file its adjusted year-end financials as at March 31, 2023.

Accounting and audit status

Audit procedures commenced at the conclusion of the adjusted year-end for the company. In recent weeks while the company was arranging for additional working capital, its external accounting group and auditor had to pause certain portions of the audit procedures until such time as payment of professional fees could resume. With new budgets established, audit processes have recommenced.

Steven McAuley, chairman and chief executive officer of Empower, commented, "We have all been aware of the broader market challenges many issuers have been facing, and we at Empower have been impacted throughout our divisions and in corporate operations."

He continued: "I am personally extremely disappointed to be in this position, having to overcome audit challenges that directly impact shareholders' ability to trade. We have no choice but to work diligently on the requirements and get the cease trade order lifted as soon as we can. We are committed to provide regular updates on our progress, and I thank all shareholders and followers for your patience."

Kai Medical Laboratory LLC

The company previously announced Kai has ceased operations at its facility in Dallas, Tex., and filed a Chapter 7 bankruptcy filing in the U.S. Bankruptcy Court Northern District of Texas on May 3, 2023. The company recently received the trustee's report of no distribution confirming liabilities scheduled to be discharged without payment in the amount of $2,389,757.27 (U.S.).

The company also announces that it entered into a debt settlement agreement with creditors on Aug. 14, 2023, for the settlement of debt in the aggregate amount of $80,000, which was settled through the issuance of an aggregate of two million common shares in the capital of the company at a deemed issue price of four cents per share considered.

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

About Empower Clinics Inc.

Empower is an integrated health care company with multidisciplinary clinics and a Canadian medical device company, and has launched two clinical research sites becoming a site management organization (SMO) with six principal investigators (PI) with multiple clinical trials under application. Empower has announced its intention to create a proposed spinout with a focus on health care artificial intelligence to support identification, recruitment and on-boarding of clinical trial patients.

We seek Safe Harbor.