VANCOUVER , Sept. 17, 2019 – EMPOWER CLINICS INC. (CBDT.CN) (EPWCF) ( Frankfurt 8EC) (“Empower” or the “Company“), a vertically integrated and growth-oriented CBD life sciences company, is pleased to announce that it has entered into a Letter of Intent (“LOI”) to form a Joint Venture Partnership (“JV”) with HERITAGE CANNABIS HOLDINGS CORP. (CSE:CANN) (“Heritage“) in Sandy, OR for the extraction of hemp for CBD oil production, and formulated CBD products.
Terms of the LOI have Empower and Heritage each with a 50% ownership of the JV. Heritage, via its wholly owned subsidiary Purefarma Solutions Inc. (“Purefarma”), will install extraction units and related downstream extraction equipment inside Empower’s existing 5,000 sq. ft. licenced hemp processing facility in Sandy, OR. In addition, Purefarma will train and supervise the staff on the proprietary methods of extraction and oil production that it produces in Canada . The JV will be equally funded by both companies with Heritage investing an initial $500,000 for start-up funds, as the build out completes and the JV secures high quality hemp supply from local growers.
Once operational, the JV will begin producing proprietary branded products for Empower’s corporately owned physician staffed health clinics in Washington State , Oregon , Nevada and Arizona . These clinics include Sun Valley Health (“Sun Valley”), a subsidiary of Empower, which has direct marketing access to over 165,000 patients and growing as Sun Valley expands its franchised network nationwide. The JV will utilize formulations from Heritage in Canada , as well as manufacture proprietary Sollievo branded products that Empower distributes throughout its clinic network.
“By moving forward with Heritage in this JV, it allows us to execute our growth strategy more quickly and efficiently. We will expand our clinics and CBD product offerings throughout the USA via our franchise model, as we aim to become a significant part of the cannabis wellness marketplace.” states Steven McAuley , Empower’s Chief Executive Officer.
The JV will also look to manufacture white label products for other distributors throughout the USA , and it is currently in talks with several potential customers to produce tinctures, topicals, gel caps and formulated bulk CBD oil.
“This is a big step for Heritage as we expand our unique capabilities south of the border into the USA . We are fortunate to be working with Empower as they bring distribution, and a licensed facility which will allow us to begin immediately filling an order pipeline.” says Clint Sharples , CEO of Heritage “Since our 30% acquisition of Endocanna Health in California , they have introduced us to many quality opportunities, including this one with Empower, and are targeting many more in the future.”
Extraction Facility Progress The Company has been awarded its hemp-handlers license from the Oregon Department of Agriculture, and now are approved to operate the new 5,000 sq. ft. facility in Sandy, OR. Pathangay Architects have been retained to complete the design and drawings, to submit permit approvals that commence the next phase of build-out. Security systems and IT networks have been installed. The Company intends to include these assets as part of the JV.
Hemp Bio-Mass Supply The Company has commenced RFP’s (Request For Proposal’s) to access the more than 1,300 licensed hemp farmers in the State of Oregon , that are known to produce some of the highest quality hemp bio-mass in the United States .
CBD Market Demand The passing in the United States of the US$867 billion Agriculture Improvement Act (the “Farm Bill“) has legalized hemp and hemp-based products. This has created an opportunity for the production and sale of a variety of CBD-based products that can provide genuine help and effective relief to millions of people suffering from a variety of qualifying conditions. Recent reports and studies indicate the approval of the Farm Bill could create a US$23 billion industry by 2023
Sun Valley Health Franchise Sun Valley Health www.sunvalleyhealth.com offers a scientific approach to alternative medicine supported by a network of nine (9) corporate locations and a nationwide franchise program that offers a turnkey opportunity including:
An electronic medical system that handles patient data and sensitive information, and deals with program tracking, referrals, and appointment reminders
A proven operational system that has 165,000 patients in its database
A retail CBD and premium wellness product offer to diversify and attract customers
An industry leading campaign management system using text messaging, email and call center systems to engage patients and customers
Paperless communication channels that are HIPAA compliant
On-site and web-based training systems to develop franchisees
Sophisticated advertising programs proven to connect with local customers
Support and infrastructure to ensure franchisees have a formula for success
Empower is a vertically-integrated health & wellness brand with it’s first hemp-derived CBD extraction facility under development, the Company produces its proprietary line of cannabidiol (CBD) based products and distributes products through company owned and franchised clinics, with wholesale partnerships, online channels and with new retail opportunities nationwide in the U.S. The company is a leading multi-state operator of a network of physician-staffed wellness clinics, focused on helping patients improve and protect their health, through innovative physician recommended treatment options. The company has commenced activity on how to connect its significant data, to the potential of the efficacy of alternative treatment options related to hemp-derived cannabidiol (CBD) therapies.
About Heritage Cannabis Holdings Corp.
The Company is a vertically integrated cannabis provider that currently has two Health Canada approved licenced producers, through its subsidiaries Voyage Cannabis Corp. and CannaCure Corp. both regulated under the Cannabis Act Regulations. Working under these two licences, Heritage has two additional subsidiaries, Purefarma Solutions, which provides extraction services, and BriteLife Sciences that is focused on cannabis based medical solutions. Heritage as the parent Company, is focused on providing resources for its subsidiaries to advance their products or services to compete both domestically and internationally.
ON BEHALF OF THE BOARD OF DIRECTORS:
Chief Executive Officer
DISCLAIMER FOR FORWARD-LOOKING STATEMENTS
This news release contains certain “forward-looking statements” or “forward-looking information” (collectively “forward looking statements”) within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Forward-looking statements can frequently be identified by words such as “plans”, “continues”, “expects”, “projects”, “intends”, “believes”, “anticipates”, “estimates”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. Forward-looking statements in this news release include statements regarding; the Company’s intention to open a hemp-based CBD extraction facility, the expected benefits to the Company and its shareholders as a result of the proposed acquisitions and partnerships; the terms of the proposed JV and partnerships; the effectiveness of the extraction technology; the expected benefits for Empower’s patient base and customers; the benefits of CBD based products; the effect of the approval of the Farm Bill; the growth of the Company’s patient list and that the Company will be positioned to be a market-leading service provider for complex patient requirements in 2019 and beyond. Such statements are only projections, are based on assumptions known to management at this time, and are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including; that the Company may not open a hemp-based CBD extraction facility; that the hemp-based CBD extraction facility may not be fully operation in 2019 if at all; that legislative changes may have an adverse effect on the Company’s business and product development; that the Company may not be able to obtain adequate financing to pursue its business plan; general business, economic, competitive, political and social uncertainties; failure to obtain any necessary approvals in connection with the proposed JV and partnerships; and other factors beyond the Company’s control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are cautioned not to place undue reliance on the forward-looking statements in this release, which are qualified in their entirety by these cautionary statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements in this release, whether as a result of new information, future events or otherwise, except as expressly required by applicable laws.
SOURCE Empower Clinics Inc.
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