Empower Clinics KAI Medical Laboratory Annual Revenue Run Rate Now Exceeding $10,000,000 USD. Empower Anticipates Order For Next 50,000 KAI Saliva PCR Test Kits To Prepare For Demand

Rhea-AI Summary

Empower Clinics has announced significant growth for its KAI Medical Laboratory in Dallas, TX, which has tripled in size following its acquisition in October 2020. In January and February 2021, KAI LAB achieved record specimen collections, with a 27% growth from January to February. The laboratory's annual revenue run rate now exceeds $10 million. Additionally, an initial soft launch of the KAI Saliva PCR Test resulted in substantial orders, with more expected to meet rising demand. Empower is expanding operational capacity to enhance efficiency and support anticipated growth.

Positive

• Record specimen collection in January and February 2021, marking a 27% growth from January to February.
• Exceeding a single-day specimen processing of 1,000 units in February 2021.
• KAI LAB's annual revenue run rate surpassing $10 million.
• Successful launch of KAI Saliva PCR Test with orders totaling approximately $16.5 million.

Negative

• None.

Kai Medical Laboratory, a state-of-the-art diagnostics laboratory in Dallas, TX was acquired by Empower Clinics on October 6, 2020 to further advance the Company's COVID-19 national testing programs, science and R&D, is now tripling in size.

VANCOUVER, BC / ACCESSWIRE / March 8, 2021 / EMPOWER CLINICS INC. (CBDT:CSE) (EPWCF:OTCQB) (8EC:Frankfurt) ("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 is pleased to announce our KAI Medical Laboratory ("KAI LAB") has achieved the following significant milestones:

1. Each of January and February 2021 recorded record months for specimen collection, with February delivering sequential growth of 27% over January 2021.

2. Exceeded a single day specimen processing of 1,000 + units in February.

3. As a result of record months year to date 2021, the KAI LAB annual revenue run rate is now exceeding $10,000,000 with meaningful positive cash flow.

Finally, the successful launch of our KAI Saliva PCR Test ("KAI Saliva") generated an initial soft launch of 5,000 units, leading to the order of 25,000 additional units with a sales value of approximately $5,500,000 on January 7, 2021. Empower now anticipates placing an order for 50,000 additional KAI Saliva units with a retail sales value of approximately $11,000,000 to build inventory sufficient to meet current demand in both the United States and Canada.

KAI MEDICAL LABORATORY NOW EXPANDING TO TRIPLE CURRENT SIZE IN ANTICIPATION OF ANTICIPATED GROWTH

KAI Medical Laboratory, a state-of-the-art diagnostics laboratory in Dallas, TX was acquired by Empower Clinics on October 6, 2020 to further advance the Company's COVID-19 national testing programs for enterprise clients, including movie and television studios, businesses and the travel industry. KAI LAB experienced significant growth in its first quarter under Empower (October 2020 - December 2020), with Q4 COVID-19 test units exceeding 6,000, far surpassing the 1,300 total units prior to acquisition.

As a result, on January 21st, Empower announced "Doubling KAI Medical Laboratory In Anticipation Of Test Volumes By End Of Q1." The Company then revised this planned expansion upwards on February 16th when it announced "KAI Laboratory Now Tripling in Size in Anticipation of Test Volumes by End of Q1."

Expansion work is commencing in March 2021 to enable KAI LAB to hire additional staff across a wide array of roles, all to improve operational efficiency and to meet anticipated demand over the coming weeks and quarters.

"Kai Medical Laboratory with the leadership of Yoshi Tyler have surpassed our initial growth forecasts, have demonstrated disciplined work ethic, a focus on science with a passion for operational excellence." said Steven McAuley, Chairman and CEO of Empower "Kai Medical is developing into a national brand with the potential to positively impact healthcare outcomes by providing access to numerous testing protocols that go beyond COVID-19 in the future."

For the purposes of facilitating the expansion, Empower has already secured additional space next door to KAI LABS in order to separate the lab & science from logistics, admin and customer support. Materials handling staff is being added to process the intake of thousands of packages per day.

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 the US and Canada. 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 the Kai Medical Laboratory acquisition may not be completed on the terms expected or at all; 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; 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 milestones did Empower Clinics announce for KAI Medical Laboratory on March 8, 2021?

Empower Clinics reported record specimen collections in January and February 2021, with a revenue run rate exceeding $10 million for KAI Medical Laboratory.

How much revenue does KAI Medical Laboratory expect from its KAI Saliva PCR Test?

KAI Medical Laboratory anticipates approximately $16.5 million from orders related to the KAI Saliva PCR Test.

What is the significance of the expansion of KAI Medical Laboratory for Empower Clinics?

The expansion is aimed at meeting growing demand for COVID-19 testing and enhancing operational efficiency.

When did Empower Clinics acquire KAI Medical Laboratory?

Empower Clinics acquired KAI Medical Laboratory on October 6, 2020.

What are the future expectations for KAI Medical Laboratory's growth?

KAI Medical Laboratory is expected to continue expanding, with plans for additional staff and capacity to manage increased testing volumes.