Empower Clinics (CSE: CBDT) this morning released a company update covering numerous topics, including recent data on warrant exercises, the status of certain applications with Health Canada, and lease arrangements for both its planned health centres in Ontario and its Kai Lab subsidiary. Most notably, the company has seen $1.5 million in proceeds from recent warrant exercises.
While the company headlined that it has now seen over $12.0 million come in the door from the exercise of warrants, the headline is slightly misleading as this figure appears to be a rolling tally, with nearly half of the funds having been received in late 2020 – a different fiscal year for the firm entirely. Since its last update on March 4, the company has seen an additional $1.5 million in funds flow to the company as a result of further warrant exercises.
In relation to the firms medical device establishment license which was filed for on January 21, the company has now been granted a full such license. The license provides the firm with the ability to import, distribute, and sell KAI Saliva, which is a Covid-19 saliva test kit intended for use at home, with Empower focusing on its use for travelers.
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With respect to the firms health centre subsidiary, the company has now signed lease agreements for a total of three locations, with build out to commence in the second quarter. Locations are expected to open within the same quarter, with two locations centered in Etobicoke, while the third is in London, Ontario. Further locations are set to be in planning, with each center expected to generate between $2.6 million and $3.6 million in annual revenues.
A lease amendment for its Kai Laboratory in Dallas, Texas, has also been completed, which will enable Empower to proceed with a planned expansion.
Empower Clinics last traded at $0.87 on the CSE.
Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
