Empower Clinics Inc. C.EPW

News

[Smokey1958]

Finally, Empower Clinics will put the relationship with the Kleins and falling value of the Sun Valley Clinics behind it. This is a strategic and financially responsible move by Steve ....and cuts the rope on the anchor it has become. It was a great move to acquire it ( the revenue generated was important to the growth of the company), it is an equally great move to divest it.

"This transaction will allow Empower to complete the divestment of its legacy cannabis assets and focus on its integrated healthcare vision", said Steven McAuley. "We also expect this divestment to allow Empower to engage with a different breadth of partners - such as banks, auditors and advertising companies - who had restrictions against engaging companies in the cannabis space".

[Outlander1]

Yep great move to cut the deadwood. Could be their books were the cause of the delays in financial reporting!

[GalAnonymous]

Same here. I love the news and the fact we are done with the Kleins! I looked up how much it cost us to acquire Sun Valley (cash and share consideration having an aggregate value of US$3,835,000 (CAD$5,160,376) so I wish we got more but then considering all the problems with Kleins, the huge decrease in the revenue brought by SVC and a burden it has become I think it’s a really smart move. And

[NuTrader17]

They are not getting 1 million usd, they are getting 1 million usd worth of common shares back from the Klein's. At whatever price is averaged of a certain amount of trading days. So technically speaking the lower the price goes the more shares they get back and vice versa if the price goes up over the specified days.

[GalAnonymous]

I get that, but to acquire Medisure we need to issue shares in addition to paying cash: "(the Company will issue an aggregate value of $1,250,000.00 CAD in capital of Empower" )  so that 1 mln usd worth of shares would come in handy! :)  

[Picaxe70]

Excellent trade off... focus... now deliver

[Smokey1958]

Agreed, Gal! The number of shares is irrelevant. The aggregate value in shares from the SVC divestment ($USD)  will be exactly that required for the Medisure acquisition ($CAD) ...so no dilution. Imho the cash requirement for the acquisition will be done creatively and with shareholder value as important as any other expectation. Even if they carried out a private placement the dilutive

[NuTrader17]

Wasn't disagreeing with your assessment. Just clarifying for people that jump into forums and read the posts. There are 10 or so active posters in this forum and sometimes 100s of views. I have read in ceo and even the empower army discord people thinking empower was receiving cash and that they could use that to fund clinic growth.

[7Twiggy]

Makes you wonder if this was getting the way of estaablishing clinics with the major US drug chains.  As far as I can tell from Insider reports the Kleins still hold 6,700,000 shares each in Empower. As far as I can tell this deal will reduce their holding by about 15%. Anyone agree I am reading this right.