EMPOWER CLINICS INC. C S E : C B D T | O T C : E P W C F | F R A : 8 E C I n v e s t o r P r e s e n t a t i o n — J u l y 2 0 1 9
Forward Looking Statement 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 of 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 others, 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 out 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 obligation 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 other 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.
Our Vision T h e n e w E m p o w e r C l i n i c s i s a g r o w t h f o c u s e d , v e r t i c a l l y i n t e g r a t e d C B D L i f e S c i e n c e s c o m p a n y c o m m i t t e d t o i m p r o v i n g p a t i e n t s ’ l i v e s w i t h p r o d u c t s , t e c h n o l o g y a n d h e a l t h s y s t e m s , d i s t r i b u t e d t h r o u g h a m u l t i - s t a t e n e t w o r k o f m e d i c a l c l i n i c s a c r o s s t h e U . S . a n d i n t e r n a t i o n a l l o c a t i o n s . 2
Why Empower Clinics? • M u l t i p l e S t r e a m s o f R e v e n u e t h r o u g h h i g h l y s c a l a b l e c l i n i c f r a n c h i s e m o d e l , C B D p r o d u c t s a l e s , t e l e - m e d i c i n e t e c h n o l o g y p l a t f o r m a n d C B D e x t r a c t i o n w h o l e s a l i n g • S t r o n g R e v e n u e s a n d R e v e n u e • . F o r e c a s t a n d a n a g g r e s s i v e g r o w t h s t r a t e g y 93 • L a r g e a n d R a p i d l y G r o w i n g M a r k e t s f o r C B D a n d w e l l n e s s i n d u s t r i e s • E x p e r i e n c e d M a n a g e m e n t a n d B o a r d w i t h r e l e v a n t e x p e r t i s e a n d a t r a c k r e c o r d o f s u c c e s s 3
Share Capital Structure Shares Outstanding 133,944,046 Warrants 15,099,596 Options 10,450,000 Fully Diluted 159,493,642 Major Shareholders % 24.76 Market Capitalization $25M 4
Sun Valley Health E m p o w e r o w n s a n e t w o r k o f p h y s i c i a n s t a ff e d m e d i c a l c l i n i c s i n Wa s h i n g t o n S t a t e , O r e g o n , A r i z o n a a n d N e v a d a , t r e a t i n g m o r e t h a n 1 6 5 , 0 0 0 p a t i e n t s w i t h a v a r i e t y o f q u a l i f y i n g c o n d i t i o n s • First to market franchise model allows for easy and fast nationwide scalability, increasing the distribution of Sollievo and Sun Valley products with minimal capital outlay • Franchisees retain rights to specific territories to open and operate Empower Sun Valley 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
Our Products S o l l i e v o — I t a l i a n f o r R e l i e f E m p o w e r h a s m u l t i p l e d i s t r i b u t i o n s t r a t e g i e s f o r o u r b r a n d e d S o l l i e v o C B D p r o d u c t s • Sollievo products target chronic pain, insomnia, digestion, anxiety, sleep disorders and more • Empower owns the proprietary formulations for these products based on science and patient data • Nationwide distribution via e-commerce platform and clinic distribution network • Sollievo products include lotions and balms, tinctures, gel caps, pain patches and an e-drink, all at various phases of R&D and production 6
Our Technology E m p o w e r h a s d e v e l o p e d a p r o p r i e t a r y s o f t w a r e t o m a n a g e p a t i e n t s t h r o u g h t h e m e d i c a l c a n n a b i s p r o c e s s . • A H I PA A c o m p l i a n t E l e c t r o n i c H e a l t h R e c o r d ( E H R ) s y s t e m a n d p a t i e n t m a n a g e m e n t p o r t a l • Te l e - m e d i c i n e p l a t f o r m t o s e r v e a n d t r e a t p a t i e n t s r e m o t e l y • E - c o m m e r c e p l a t f o r m f o r S o l l i e v o a n d S u n Va l l e y C B D P r o d u c t L i n e s • G r o w i n g d a t a b a s e o f h i g h v a l u e p a t i e n t i n f o r m a t i o n • I n t e r a c t i v e e d u c a t i o n k i o s k s a r e b e i n g p l a c e d i n t o c l i n i c s t o i m p r o v e p a t i e n t e x p e r i e n c e 7
Our CBD E m p o w e r h a s c o m m e n c e d b u i l d - o u t o f i t s f i r s t C B D e x t r a c t i o n f a c i l i t y i n P o r t l a n d , O r e g o n • 5 , 0 0 0 s q u a r e f o o t l e a s e d b u i l d i n g w i t h f i r s t e x t r a c t i o n s y s t e m c a p a b l e o f p r o d u c i n g 2 0 k g p e r d a y o f 9 9 % s p e c t r u m o i l , i s o l a t e o r d i s t i l l a t e • C u r r e n t w h o l e s a l e p r i c i n g i s $ 6 , 5 0 0 / k g w i t h a n n u a l c a p a c i t y 6 , 0 0 0 k g f o r e s t i m a t e d r e v e n u e o f U S $ 3 9 M • S c a l a b l e t o f o u r e x t r a c t i o n s y s t e m s f o r u p t o 2 4 , 0 0 0 k g o f p r o d u c t a n d o v e r $ 1 5 0 M a n n u a l l y a t i n d u s t r i a l s c a l e 8
CBD Extraction • 5 , 0 0 0 s q u a r e f o o t l e a s e d f a c i l i t y • 2 0 k g / d a y p r o d u c t i o n US $98M c a p a c i t y o f 9 9 % s p e c t r u m o i l , i s o l a t e o r d i s t i l l a t e 15,000kg Extract Volume • W h o l e s a l e p r i c e U S Revenue US $39M $ 6 , 5 0 0 / k g w i t h a n n u a l c a p a c i t y o f 6 , 0 0 0 k g / y e a r f o r a n e s t i m a t e d U S $ 3 9 M 6,000kg i n r e v e n u e US $20M 3,000kg • F a c i l i t y s c a l a b l e t o f o u r e x t r a c t i o n s y s t e m s f o r 2 4 , 0 0 0 k g / y e a r c a p a c i t y 2021 2019 2020 a n d U S $ 1 5 0 M i n r e v e n u e 9
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