Empower Clinics (OTC: EPWCF) is selling its legacy cannabis assets for $1 million and said it plans to fully focus on its integrated healthcare business. The non-binding agreement outlines that Andrea Klein and Dustin Klein are buying Sun Valley Health Holdings LLC, Sun Valley Health Franchising, LLC, Sun Valley Health, LLC, Sun Valley Health West, LLC, Sun Valley Health Tucson, LLC, Sun Valley Health Mesa, LLC, Sun Valley Alternative Health Centers NV, LLC, and all subsidiaries.
According to the company statement, the structure of the agreement is on a cash-free, debt-free basis wherein the consideration of $1 million and is to be settled by the transfer from the Kleins to, or as directed by, the Seller, of such number of common shares in the capital of Empower as is equal to $1 million.
Not long ago the company reported its earnings for the first quarter of 2021 with total revenues of $2,036,700 versus 2020 revenues of $789,135, representing 258% year over year growth. The company said that the increase over the prior year is attributable to the impact of COVID-19, along with the acquisition of Kai on October 5, 2020, partially offset by the reduction in patients visiting the Sun Valley Health clinics as a result of State legalization of cannabis in November 2020. In June 2021, Empower entered into a six-month pilot program with PharmaChoice to sell Kai Care saliva test kits. PharmaChoice is a fast-growing, independently owned Canadian Pharmacy network with more than 900 locations covering the PharmaChoice and RxHealthMed brands. Also in June, Empower signed a non-binding term sheet to acquire Medisure + Sure Canada Inc., a leading Canadian manufacturer of medical devices for patients managing diabetes.