Empower Clinics Inc. (OTCMKTS:EPWCF) (CSE:EPW) announced Monday that it has closed a second round of financing, raising C$780,000.
The company said the non-brokered private placement of unsecured convertible debentures and the second-tranche of a non-brokered private placement has raised total proceeds of C$783,520 and funds raised will go towards strategic acquisitions and for general working capital and corporate purposes.
"The strong support of our financing round demonstrates that shareholders and investors have faith in our ability to execute on initiatives, as we establish vertical integration connecting patient efficacy in our clinics with a diverse CBD product strategy and the backing of the science of extraction, all driven by data and analysis," said Chairman and CEO Steven McAuley.
READ: Empower closes acquisition of Sun Valley Clinics, creating one of the largest clinic groups in US medical cannabis sector
Empower runs a network of physician-staffed clinics focused on patient care using medical cannabis.
It continues to diversify its business model to become a vertically integrated operator in the global cannabis sector with a focus on patient care, CBD product distribution, research and development and CBD product extraction.
Last week, Empower announced that it has closed the acquisition of Sun Valley Certification Clinics Holdings in a deal expected to create one of the largest clinic groups in the medical cannabis sector in the US.
For the second tranche of the financing, Empower issued unsecured convertible debentures in the amount of C$207,270 and also issued 5.76 million units at a price of $0.10 per unit in a non-brokered private placement, raising C$576,250.
The debentures will mature 12 months from the closing and bear a 6% annual interest rate payable at maturity. The company said each debenture will be convertible into units at a conversion price of C$0.11, with each unit consisting of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one share at a price of C$0.16 per share for a period of two years from the closing of the financing, subject to acceleration.
None of the securities to be issued will be registered under the US Securities Act of 1933 or applicable state securities laws, according to Empower. They may not be offered or sold to investors in the US.
The company also announced that it has appointed Dustin Klein as a director, in conjunction with the previously announced closing of the Sun Valley acquisition.
The firm also announced Emily Davis has stepped down and thanked her for her contributions.
Shares of Empower were at C$0.20 on Monday.
Contact Katie Lewis at [email protected]