Empower Clinics Inc EPWCF

SP prediction

[Dmarcz]

Not taking credit-just sharing for new investors 25yrs in banking napkin math is the best so here is some to ponder as we weigh Empower against it's peers in the space..... WELL.TO operates 20 clinics and sells digital software applications to approx 2000 clients across Canada. Revenues of $43m TTM with a 32x multiple creates a cap of $1.4B. With 162m shares outstanding you have an $8+ SP. What's interesting to note is Steve has just last week said they want to have 30 clinics up and running. Each as we know will conservatively generate $1-$1.5m+ in revenue. This is reasonable as we look to WELL.TO.....20 clinics/$1.5m per and $10m perhaps from their other revenue generator (software) to $43m?! The numbers jive. So what.....in reality.....does this mean for our company? The Fiscal Y/E Financials are due no later than end of March. It will capture 2020's success and will give a us a boost past the $3m reported end of Sept. Our close at $1.69 suggests revenue slightly in excess of $10m (using the same 32X multiple per above). This is NOT unreasonable to expect this will be the case however here's the great part for those playing the long game as I am..... The 30 clinic income alone once reported into 2022 makes this an $8 company. The fun part comes when you add the income for KAI Lab Covid Tests....IF we really can do 3000 tests per day and are ONLY doing them Mon-Friday.....the math is easy...it's 600,000 tests March to December 2021. Even in CAD of $150 per that's $90m of revenue. We can't yet rely on the lab income as it has to get moving and will take more time but it's not unrealistic to assume we cant count on approx $10m in clinic and pre-existing income looking forward to the Y/E 2021 Financials. I'm not discounting everything else we have going on my napkin is only so big.... $100m in TTM by end of 2021 using a 32X multiple divided by the 195m shares outstanding. $16.41 by the end of the year