Empower Announces Delay in Filing of Annual Financial Statements
Empower Clinics Inc. (OTCQB:EPWCF) announced it will not file its annual audited financial statements for 2020 by the April 30, 2021 deadline. The delay is attributed to difficulties caused by the coronavirus pandemic, which hindered travel for audits, and the need for valuations of two recently acquired private companies, which lacked prior audit experience. The Company has applied for a Management Cease Trade Order (MCTO) to restrict trading by senior executives while it works to meet regulatory requirements.
- The Company is actively addressing the challenges faced due to the pandemic and acquisitions.
- Acquisitions may lead to future growth and expansion in services.
- Failure to file financial statements by the deadline may result in regulatory scrutiny.
- MCTO could hinder trading activity and investor confidence.
VANCOUVER, BC / ACCESSWIRE / April 30, 2021 / Empower Clinics Inc. (CSE:CBDT) (Frankfurt:8EC) (OTCQB:EPWCF) (the "Company" or "Empower") has determined that it will not be able to file its annual audited financial statements for the year ended December 31, 2020, and its related Management's Discussion and Analysis and Chief Executive Officer and Chief Financial Officer certifications (collectively, the "Required Filings"), by the prescribed filing deadline of April 30, 2021 (the "Filing Deadline"), and wishes to avoid prejudicing shareholders in the event that it is unable to do so.
The delay is primarily due to the negative impact of the coronavirus pandemic and our inability to travel for audit purposes to our U.S. based subsidiaries. Further, the Company completed two acquisitions in late 2020 of private companies that had no prior audit experience, in addition an independent third-party valuation of the new subsidiaries has been required by our audit firm.
The Company has made an application to the British Columbia Securities Commission for a temporary management cease trade order ("MCTO") under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203") which would restrict all trading in securities of the Company, whether direct or indirect, by the Chief Executive Officer and Chief Financial Officer of the Company. The issuance of an MCTO does not generally affect the ability of persons who are not directors, officers or other insiders of the Company to trade in securities of the Company.
This press release is available on the Empower Clinics Verified Forum on AGORACOM for shareholder discussion, questions and engagement with management https://agoracom.com/ir/EmpowerClinics
ABOUT EMPOWER:
Empower is an integrated healthcare company that provides body and mind wellness for patients through its clinics, with digital and telemedicine care, and world-class medical diagnostics laboratories. Supported by an experienced leadership team, Empower is aggressively growing its clinical and digital presence across North America. Our Health & Wellness and Diagnostics & Technology business units are positioned to positively impact the integrated health of our patients, while simultaneously providing long term value for our shareholders.
ON BEHALF OF THE BOARD OF DIRECTORS:
Steven McAuley
Chief Executive Officer
CONTACTS:
Investors:
Steven McAuley CEO
s.mcauley@empowerclinics.com
604-789-2146
Investors:
Tamara Mason
Business Development & Communications
t.mason@empowerclinics.com
416-671-5617
DISCLAIMER FOR FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements" or "forward-looking information" (collectively "forward looking statements") within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Forward-looking statements can frequently be identified by words such as "plans", "continues", "expects", "projects", "intends", "believes", "anticipates", "estimates", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. Forward-looking statements in this news release include, but are not limited to, statements regarding: the expected benefits to the Company and its shareholders as a result of the acquisition of Kai Medical Laboratory; the transaction terms; the expected number of clinics and patients following the closing; the future potential success of Kai Medical Laboratory, Sun Valley's franchise model; launch of new healthcare centers and the occurrence thereof; that the Company can bring healthcare to millions of Canadians; that new healthcare services can be added and that the Company will be positioned to be a market- leading service provider for complex patient requirements in 2020 and beyond. Such statements are only projections, are based on assumptions known to management at this time, and are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including: that Kai Medical Laboratory will successfully win any US Government RFP; that the MedX Health pilot program will be successful; that Empower will place the MedX Health teledermatology product in health centers in North America; that the Company's products may not work as expected; that the Company may not be able to expand COVID-19 testing; that the Company will be successful in its MCTO application; that legislative changes may have an adverse effect on the Company's business and product development; that the Company may not be able to obtain adequate financing to pursue its business plan; that the Company will be able to commence and/or complete build-outs and tenants improvements for Canadian clinics or Kai Medical Laboratory expansion inn 2Q 2021; that general business, economic, competitive, political and social uncertainties; failure to obtain any necessary approvals in connection with the proposed transaction; and other factors beyond the Company's control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are cautioned not to place undue reliance on the forward-looking statements in this release, which are qualified in their entirety by these cautionary statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements in this release, whether as a result of new information, future events or otherwise, except as expressly required by applicable laws.
SOURCE: Empower Clinics Inc.
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https://www.accesswire.com/643652/Empower-Announces-Delay-in-Filing-of-Annual-Financial-Statements
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