A vertically integrated CBD Life Sciences company
CSE: CBDT | OTC: EPWCF | FRA: 8EC
Investor Presentation February2020
version Jan 31, 2020
TM
Investor Presentation February2020 A vertically integrated CBD - - PowerPoint PPT Presentation
TM Investor Presentation February2020 A vertically integrated CBD Life Sciences company CSE: CBDT | OTC: EPWCF | FRA: 8EC version Jan 31, 2020 TM FORWARD LOOKING STATEMENT Certain statements contained in this clinics and via its
CSE: CBDT | OTC: EPWCF | FRA: 8EC
version Jan 31, 2020
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Certain statements contained in this presentation, including statements containing the words “may”, “proposed”, “intends”, “become”, “believes,” “plans,” “expects,” “anticipates,” and words of similar import, constitute “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements in this presentation include, but are not limited to, statements regarding: the vision of Empower Clinics Inc. (together with its subsidiaries, the “Company” or “Empower”); the expected effects of, and opportunities resulting from, the passing of the Farm Bill on the CBD market; the Company's proposed acquisition of Sun Valley Clinics and of a CBD extraction facility; the expected method
Company's proposed debenture financing; and any proposed equity financing. Forward-looking statements are only projections, based on assumptions known to management at this time, and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
to continue to acquire patients at its medical clinics and via its telemedicine platform; the Company's interpretation of activities permitted as a result of the passing of the Farm Act; enforcement action related to CBD products, including by the United States Food and Drug Administration and state and local governments; competition from other clinics and cannabis processors; the Company's ability to obtain the financing necessary to complete its proposed acquisitions and carry
successfully complete the proposed acquisitions on the terms expected or at all, and integrate any business it may acquire into its operations; legislative changes; general business, economic, competitive, political and social uncertainties; failure to obtain any necessary approvals in connection with any proposed transactions; other factors beyond the Company’s control; and other risks detailed in the Company's filings available under its SEDAR profile at www.sedar.com. Given these uncertainties, undue reliance should not be placed on any forward-looking
statements contained herein to reflect future events or developments, except as required by applicable law. This document is solely for information purposes and is not to be construed as investment advice or as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction, including in the United
confidential and must not be copied or distributed, in whole or in part, nor may its contents be disclosed by any person to any
reviewing this material, in consideration therefor, agrees not to circumvent the business proposals explicitly or implicitly contained herein in any manner, directly or indirectly. Further, any recipient hereof agrees to maintain all information received in the strictest confidence and shall not disclose to any third parties any information material to the opportunity contained herein and, upon review hereof, agrees that any unauthorized disclosure by any party will result in irreparable damage for which monetary damages would be difficult or impossible to accurately determine. Recipients recognize, and hereby agree, that the proprietary information disclosed herein represents confidential and valuable proprietary information and, therefore, will not, without express prior written consent of the Company, disclose such information to any person, company, entity or other third party, unless so doing would contravene governing law or regulations.
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Experienced Management and Board with relevant expertise and a track record of success Multiple Streams of Revenue through highly scalable clinic franchise model, CBD product sales, product/ technology IP development and CBD extraction wholesaling Strong Revenues and Revenue Forecast and an aggressive growth strategy
Large and Rapidly Growing Markets for CBD and wellness industries
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86 23 4 46 13 40 10 4 CLINICS/PRODUCTS
(US $MM)
EXTRACTION
(US $MM)
2020 pro-forma revenue of US $23M and EBITDA of $6M Proprietary technology platforms Electronic Health Records portal and e-commerce for CBD products with minimal capital outlay Market leading extraction facility capable of producing US $13M year one wholesale and in excess of US $100M at full capacity
TOTAL
(US $MM)
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*Brightfield Group report stats
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*Brightfield Group report stats
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SollievoTM products are rigorously tested to confirm quality, potency and homogeneity EmpowerTM owns the proprietary formulations for these products based on science and patient data Nationwide distribution via e-commerce platform, clinic distribution network and retail partnerships SollievoTM products include lotions and balms, tinctures, gel caps, pain patches and an e-drink, all at various phases of R&D and production
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EmpowerTM has developed a proprietary software to manage patients through the medical cannabis process.
A HIPAA compliant Electronic Health Record (EHR) system and patient management portal Tele-medicine platform to serve and treat patients remotely E-commerce platform for Sollievo and Sun Valley CBD Product Lines Growing database
information and data science Interactive education kiosks placed into clinics to improve patient experience and education
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LEASED FACILITY
WHOLESALE PRICE
PRODUCTION CAPACITY*
*of 99% spectrum oil, isolate
CURRENT ANNUAL REVENUE
CURRENT ANNUAL CAPACITY
FACILITY SCALABILITY*
*to four extraction systems for 24,000kg/year capacity and US $100M in revenue
$46M USD 8,100 KG $13M USD 2,300 KG
REVENUE EXTRACT VOLUME
2019 2020 2021
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Cannabis Education Platform Cannabis Pet Education Platform Data and Analytics Platform
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January 2019 Leadership Change April 2019 $3.6M raise April 2019 Ticker symbol change and new website April 2019 Cannvas Medtech Partnership June 2019 Secured 1st Extraction Facility June 2019 Launched Sun Valley Health Brand June 2019 Launched National Franchise Program July 17 2019 First Franchise Application May 2019 Sun Valley Clinics Acquisition May 2019 Commenced selling SollievoTM products
August 2019 Endocanna Partnership for DNA Test Kit August 2019 Awarded Hemp- Handlers Licence in Oregon August 2019 Launched Sun Valley Health online shop August 2019 Awarded OTCQB Listing September 2019 Heritage JV announcement
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December 2019 Heritage Cannabis advances $250,000 to JV Extraction facility January 2020 Sold first Sun Valley Health franchise
Sources: 1)Analyst Research by Cohen and Co. 2)BNN Bloomberg https://www.bnnbloomberg.ca/trendy-hemp-compound-cbd-set-for-big-boost-from-u-s-farm-bill-1.1185746 3)Eight Capital, “The Value Case for Investing in the Cannabis Sector”. 4)Global Wellness Institute “Statistics and Facts”. Summary accessible online at: https://globalwellnessinstitute.org/press-room/statistics-and-facts/
Global sales of legal cannabis are expected to reach $75B by 20301 U.S. market for hemp-based CBD products—$23B by 2023 with passage of 2018 US Farm Bill2 Global medical cannabis market— $180B over time3 Global wellness market value— $4.2 trillion in 20154
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Dustin Klein
SVP Business Development
Mathew Lee
CFO
Andrea Klein
VP Operations
Joseph Cohen
CTO
Steven McAuley
Chief Executive Officer empowerclinics.com
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Andrejs Bunkse
Director
attorney of Rain Legal Partner in Nimbus Legal
cannabis enterprises in the U.S. and Canada
Steven McAuley
Director & CEO
Technology, Xpel Technologies, Penske Automotive, GE Capital Fleet
Dustin Klein
Director SVP , Bus. Dev.
Valley Clinics
Legal Counsel Auditor Darren Prins
CPA — Advisor
Accounting empowerclinics.com
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Aggressive Growth Strategy closed Sun Valley acquisition doubling number
database, launched CBD product sales and commenced CBD extraction build out Multiple Streams of Revenue resulting in an estimated US$86M by 2021, up from US $4M in 2019 Management with expertise to execute strategy to build shareholder value Rapidly Growing Markets for cannabis expected to reach $180B
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CSE: CBDT | OTC: EPWCF | FRA: 8EC
Steven McAuley | Chairman & CEO s.mcauley@empowerclinics.com | 604.789.2146
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