Empower Clinics Annouces Approval of Management Cease Trade Order
Empower Clinics Inc. (CSE:CBDT)(FRA:8EC)(OTCQB:EPWCF) announced the approval of a Management Cease Trade Order (MCTO) from the British Columbia Securities Commission due to delays in filing audited annual financial statements for the year ending December 31, 2020. The MCTO restricts trading by the CEO and CFO but does not affect other shareholders. The company anticipates filing the required documents by May 21, 2021, citing COVID-19 impacts on audits as the primary reason for the delay. Empower is committed to maintaining transparency through alternative information guidelines while awaiting the filing.
- The company is actively working with auditors to complete the audit process.
- Empower expects to file the required documents by May 21, 2021.
- The delay in filing audited financial statements could raise concerns among investors.
- The MCTO restricts trading for senior executives, which may be perceived negatively.
VANCOUVER, BC / ACCESSWIRE / May 3, 2021 / EMPOWER CLINICS INC. (CSE:CBDT)(FRA:8EC)(OTCQB:EPWCF) ("Empower" or the "Company") an integrated healthcare company - serving patients through medical centers, telemedicine platforms and a high complexity medical diagnostics laboratory processing thousands of COVID-19 specimens - announces that, further to its April 30th, 2021 news release, its application for a management cease trade order (the "MCTO") under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203") has been approved by the British Columbia Securities Commission (the "BCSC").
The Company recently announced it was filing an application seeking an MCTO from the BCSC after determining it would be unable to file its audited annual 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"). The delay in filing is primarily due to the impact of COVID-19 on the audit and associated required travel, of the Company's recently acquired subsidiaries in both the US and Canada.
The MCTO restricts 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.
The Company is working expeditiously with auditors to complete the audit as soon as possible and anticipates that it will be a position to remedy the default by filing the Required Filings on or about May 21, 2021. An approved MCTO would remain in effect until the Required Filings are filed.
The Company intends to satisfy the provisions of the alternative information guidelines set out in Sections 9 and 10 of NP 12-203 so long as the Required Filings are outstanding.
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
CONTACT:
Investors:
Steven McAuley
CEO
s.mcauley@empowerclinics.com
604-789-2146
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 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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FAQ
What is the significance of the Management Cease Trade Order for EPWCF shareholders?
When does Empower Clinics expect to file its audited financial statements?
What caused the delay in Empower Clinics' financial filings?
How does the MCTO affect Empower Clinics' stock?
