Empower Clinics Enters Strategic Review After Cancelling Financing
Empower Clinics (CSE: EPW), a once-popular healthcare name among investors that provided diagnostic testing during the pandemic, indicated this morning that it is undertaking a strategic review to find a path forward.
The review follows the firm cancelling a private placement yesterday that was initially announced in January. That financing looked to raise $2.0 million at $0.03 per unit, with the firm obtaining a special exemption from the CSE to conduct the funding round at such a low price. Proceeds from that financing were to cover corporate G&A, as well as development of products with MediSure Canada and the related costs of establishing distribution.
The company has appointed Haywood Securities as the firms strategic financial advisor as it looks to conduct the strategic review. Potential options to be explored include asset sales or spin outs, joint ventures, licensing, mergers, acquisitions or other business combinations, or even a reverse merger. A timeline for completion has also not been set.
“Maximizing shareholder value is a priority and to that end, throughout late 2022 and during Q1 2023, Empower has been aggressively cutting costs and focusing its business lines and initiatives with the goal of accelerating our timeline to achieving profitability. To achieve this objective, we believe the commencement of our strategic review process, supported by the team at Haywood, will help accelerate connections to new opportunities for the Company,” commented CEO Steven McAuley.
The company last month indicated that its 2022 revenues amounted to $4.7 million, however the firm reported a loss from operations of $5.0 million and a net loss from continuing operations of $3.0 million.
Empower Clinics last traded at $0.02 on the CSE.
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