Empower Clinics nets $12 million from warrant exercise, reveals expansion plans for KAI Medical Laboratory and Ontario clinics

Empower Clinics Inc (CSE:CBDT) (OTCQB:EPWCF) provided a series of updates on Friday that it said will set the stage for further growth in 2021.

The Vancouver-based firm said it received over C$12 million from a warrant exercise in March that, when combined with revenue from its KAI Medical Laboratory, gives it enough fire power to continue expanding in each of its business divisions.

“The company has never looked better, has never been more stable than today, has a great balance sheet and has clear vision for the future,” CEO Steven McAuley told shareholders in a statement. “Our leadership team, our entire team share a collective vision of growth, we care about patients, we are focused on technology, we understand the importance of what we are doing.”

READ: Empower Clinics and MedX Health to pilot MedX’s teledermatology screening platform at two Empower Clinics locations in Ontario

KAI Medical Laboratory is a state-of-the-art diagnostics laboratory in Dallas, Texas that was acquired by Empower in October 2020 to further advance its coronavirus (COVID-19) national testing programs for enterprise clients.

Empower said it had received its full medical device establishment license that will strengthen its ability to sell and distribute KAI’s at-home COVID-19 RT-PCR saliva test.

“We all have an urgent requirement for a home-based, self-administered COVID-19 saliva test kit that can help open up the economy and facilitate travel that meets the requirements of the executive travel orders,” McAuley said.

“As a result of receiving full MDEL status, Empower is engaged in meaningful discussions with several potential distribution partners across Canada. We fully expect KAI Saliva to enjoy the kind of success it is achieving in the United States.”

KAI LAB has now completed a lease amendment with its landlord in Dallas to take over the neighboring space, tripling the size of the lab. The expansion work will enable KAI LAB to hire additional staff across a wide array of roles, Empower told investors, in order to improve operational efficiency and to meet anticipated demand over the coming weeks and quarters. The expansion is set to be completed at the end of the month.

New clinics in Ontario

Empower, which also runs a network of healthcare clinics in North America, also updated shareholders on the status of the first three integrated health centres in Ontario. Empower said it is now advancing to the build-out phase with first completions and openings anticipated for 2Q 2021.

The company said that each location is expected to generate around $3 million in annualized revenue.

Empower added that it will be opening primary care, plus para-medical healthcare services in each of the locations, with a target of four to six Medical Doctors and the same number of paramedical practitioners per location.

When each location is fully operational, Empower anticipates it can generate $2,560,000 to $3,600,000 in annual revenue per location.

Contact Angela at [email protected]

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Story by ProactiveInvestors