Investor Presentation February2020 A vertically integrated CBD - - PowerPoint PPT Presentation

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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


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A vertically integrated CBD Life Sciences company

CSE: CBDT | OTC: EPWCF | FRA: 8EC

Investor Presentation February2020

version Jan 31, 2020

TM

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FORWARD LOOKING STATEMENT

empowerclinics.com

TM

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

  • f distribution of the Company’s products; the

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

  • statements. Such factors include, among
  • thers, risks related to: the Company's ability

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

  • ut its business plan; the Company’s ability to

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. The Company disclaims any
  • bligation to update 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

  • States. This document and its contents are

confidential and must not be copied or distributed, in whole or in part, nor may its contents be disclosed by any person to any

  • ther person. Any party receiving and/or

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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OUR VISION

THE NEW EMPOWERTM IS GROWTH FOCUSED VERTICALLY INTEGRATED A CBD LIFE SCIENCES COMPANY WE IMPROVE PATIENTS LIVES

We utilize TECHNOLOGY RESEARCH and MULTI-STATE

  • perations

empowerclinics.com

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WHY EMPOWER CSE: CBDT?

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

empowerclinics.com

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WHY EMPOWER CSE: CBDT?

165,000 patients with direct marketing access Nationwide franchise program CBD Product Stores in every wellness clinic location Proprietary Product I.P. for global distribution Vertical Integration controls supply chain with increased margin CBD Extraction Facility producing distillate, isolate Product Manufacturing producing gel caps, tinctures, vapes & topicals

empowerclinics.com

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STRONG GROWTH PROFILE

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

Six corporate clinic locations and rapidly expanding franchise network generating US $10M in revenue annually in 2020

TOTAL

(US $MM)

empowerclinics.com

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SHARE CAPITAL STRUCTURE

empowerclinics.com

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SUN VALLEY ACQUISITION

National + International expansion plans

In May 2019, Empower

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announced the closing of the acquisition of Sun Valley Certification Clinics

Acquisition more than doubled number of clinic locations, adding 5 new facilities in Arizona and telemedicine for California Sun Valley has a well-established CBD product offering Additional US $4M annualized revenue for 2019 and US $5M in 2020 Added 45,000 active patients to Empower’s database Fully developed franchise model for capital light growth

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empowerclinics.com

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SUN VALLEY HEALTH FRANCHISE

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Launched Nationwide Franchise Program Participating in multiple Franchise Expos in 2020 Franchisees Purchase a Protected

  • Territory. The Company Receives

Upfront Franchise Fees, Royalties and Product Sales and Distribution Recurring Monthly Fees for Technology Support Franchisees Get a Turnkey Business Model Using SVH Brand EndoCanna DNA Kit Sold Through Network and Online Health and Wellness Consultations Retail Product Displays for CBD Product Lines Premium Wellness Products Master Franchisor Retains Rights to Patient Data

empowerclinics.com

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CBD MARKET GROWTH 2019

*Brightfield Group report stats

*According to the Brightfield Group report the CBD market in the U.S. has grown

  • ver 700% in 2019 to $5 billion.

The CBD industry is becoming much more saturated than it was before the passing of the U.S. Farm Bill late last year, with new products entering the market, threatening to take a slice of the CBD pie that the early producers of CBD have enjoyed until this time.

empowerclinics.com

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CBD MARKET GROWTH

*Fuelled by a massive influx of millions of new consumers and the entrance of large retailers, The CBD market is estimated to grow to a $23.7 billion industry through 2023.

*Brightfield Group report stats

empowerclinics.com

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SUN VALLEY HEALTH

  • Nationwide franchise model allows for easy and fast scaleability increasing the

distribution of SollievoTM and Sun Valley HealthTM products with minimal capital

  • utlay
  • Franchisees retain rights to specific territories to open and operate Sun Valley

HealthTM clinics and sell CBD products in clinics and to local sales regions

  • EmpowerTM receives upfront franchise fees, ongoing clinic royalties, product

royalties and ownership of patient database information

EmpowerTM owns a network of physician staffed health clinics in Oregon and Arizona, with more than 165,000 patients in the network

empowerclinics.com

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OUR PRODUCTS

SollievoTM — Italian for Relief Empower has multiple distribution strategies for our branded Sollievo CBD products

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

empowerclinics.com

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OUR TECHNOLOGY

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

  • f high value patient

information and data science Interactive education kiosks placed into clinics to improve patient experience and education

TM

empowerclinics.com

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CBD EXTRACTION

5,000SQFT

LEASED FACILITY

4,000per kg

WHOLESALE PRICE

20kg/day

PRODUCTION CAPACITY*

*of 99% spectrum oil, isolate

  • r distillate

13M

CURRENT ANNUAL REVENUE

2,300kg

CURRENT ANNUAL CAPACITY

4X

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

BUILD OUT

REVENUE EXTRACT VOLUME

2019 2020 2021

empowerclinics.com

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EXTRACTION JOINT VENTURE

PARTNERSHIP WITH HERITAGE CANNABIS. CSE: CANN

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EMPOWER PROVIDES

OPERATING LICENCES + PERMITS CAP EX FOR EXTRACTION EQUIPMENT EXTRACTION EXPERTISE THROUGH PUREFARMA DIVISION ACCESS TO LARGE SCALE PRODUCTION CONTRACTS CAPITAL MARKETS VISIBILITY, INVESTMENT BANKING ACCESS.

empowerclinics.com

MANAGES LABOUR HEMP BIOMASS FACILITY

HERITAGE PROVIDES

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STRATEGIC PARTNERSHIPS

(AI PLATFORM)

empowerclinics.com

(PATIENT DNAKIT) (MEDTECH)

Cannabis Education Platform Cannabis Pet Education Platform Data and Analytics Platform

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Dec Jan Aug Sept June July

TIMELINE & MILESTONES

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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

Jan April May

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

empowerclinics.com

December 2019 Heritage Cannabis advances $250,000 to JV Extraction facility January 2020 Sold first Sun Valley Health franchise

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GROWING GLOBAL MARKET

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

RAPIDLY GROWING MARKETS FOR MEDICAL CANNABIS AND WELLNESS INDUSTRIES

empowerclinics.com

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LEADERSHIP TEAM

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

  • Owner and practising

attorney of Rain Legal Partner in Nimbus Legal

  • Counsel to numerous

cannabis enterprises in the U.S. and Canada

BOARD & ADVISORS

Steven McAuley

Director & CEO

  • CEO Privatis

Technology, Xpel Technologies, Penske Automotive, GE Capital Fleet

Dustin Klein

Director SVP , Bus. Dev.

  • Co-Founder, Sun

Valley Clinics

Legal Counsel Auditor Darren Prins

CPA — Advisor

  • Partner, Invictus

Accounting empowerclinics.com

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SUMMARY

Aggressive Growth Strategy closed Sun Valley acquisition doubling number

  • f clinics, significantly increasing patient

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

empowerclinics.com

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CSE: CBDT | OTC: EPWCF | FRA: 8EC

Steven McAuley | Chairman & CEO s.mcauley@empowerclinics.com | 604.789.2146

empowerclinics.com

TM