- Empower is one of the largest operators of physician-staffed, medical cannabis-focused health care in the US
- Multiple revenue streams resulting in an estimated US$86 million in sales by 2021
- Proprietary line of CBD products formulated by scientists and field experts
- Expanding into psilocybin and psychedelics research and patient treatment options
What Empower Clinics does:
Empower Clinics Inc (OTCMKTS:EPWCF) (CSE:CBDT) owns a network of physician-staffed health clinics in Oregon and Arizona that serve more than 165,000 patients and provides tele-medicine options in Arizona, Oregon, Washington State, Nevada and California.
The Vancouver-based firm’s franchise model allows for easy and fast scaleability, increasing the distribution of its CBD-based product, Sollievo (which means ‘relief’ in Italian).
Empower Clinics is selling Sun Valley Health franchises and is accepting franchise applications. Each franchise retains the rights to specific territories to open and operate Sun Valley Health clinics and sell CBD products in clinics and to local sales regions. Empower receives upfront franchise fees, ongoing clinic royalties, product royalties and ownership of patient database information.
Each franchise retains the rights to specific territories to open and operate Sun Valley Health clinics and sell CBD products in clinics and to local sales regions. Empower receives upfront franchise fees, ongoing clinic royalties, product royalties and ownership of patient database information.
Sollievo’s offerings include CBD lotion, tinctures, spectrum oils, capsules, lozenges, patches, topical lotions, gel caps, e-drinks, hemp extract drops and pet elixir hemp extract drops.
Thanks to 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, data from Brightfield Group indicates.
Empower also supports remote patients using its telemedicine portal, enabling patients who do not live near one of its clinics and can’t come to a location, to still benefit from a doctor consultation.
Empower has an agreement with Heritage Cannabis Holdings Corp (CSE:CANN) to form a joint venture to extract hemp for CBD oil production and formulated CBD products as part of an agreement signed in September 2019.
Judging by the ballooning number of patients visiting its clinics, Empower’s aggressive growth strategy is putting the company on track for strong, stable revenue.
How is it doing:
Patient visits increased by 800% in February 2020 versus the same month in 2019. Total patient visits came in at 1,817 compared to 227 in February 2019, by 871% in April 2020, with total patient visits of 2,212 in April 2020 compared to 254 in April 2019.
The company also announced plans to create psilocybin and psychedelics subsidiaries, leveraging its existing clinic network, the developing franchise brand, its 165,000 patients and product development capability.
According to Empower, studies are finding that psilocybin - the active agent in magic mushrooms - could treat addiction, depression, anxiety and mental health conditions like post-traumatic stress disorder (PTSD) and end-of-life psychological distress.
Meanwhile, both Empower and Heritage are getting set to start manufacturing CBD oil in the US. Heritage has ordered and installed extraction and post-production equipment units at Empower’s hemp processing facility in Sandy, Oregon.
Downstream equipment is also being installed, including gel cap processing, tincture bottle and vape cartridge filling, and labelling, packaging, storage and shipping services for the companies to offer full service, end-to-end products to third parties.
The products will then be used in proprietary formulations, tolling services and third-party white labelling services for distributors throughout the US, to be distributed through Empower’s network of clinics in Oregon and Arizona.
Empower is in a unique position, having tapped into a rapidly growing market for medicinal cannabis and bridging the gap with the broader wellness industry.
According to analyst research, the total market value of the global wellness market hit US$4.2 trillion in 2015. Medical cannabis is now a global industry as well, with a value estimated to grow to around US$180 billion.
In the US, where Empower has focused its operations, the market for hemp-based CBD products is expected to hit US$23 billion by 2023.
What do these numbers mean to Empower’s bottom line? The firm’s own guidance, accounting for multiple revenue streams, puts it on track to hit an estimated US$86 million in sales by 2021.
What the boss says:
Empower CEO Steven McAuley recently told Proactive that the firm is seeing record traffic at its clinics in the US even as the widespread coronavirus outbreak is causing chaos to other businesses.
“It’s a reflection of how important these plant-based treatment options are and the access to medical cannabis solutions are for our patients,” McAuley said in an interview. “In some cases, we are their front-line doctor of choice if perhaps they don’t have any other medical coverage in the United States.”
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