Empower Clinics Provides MCTO Update
Empower Clinics Inc. (OTCQB:EPWCF) issued an update on its management cease trade order (MCTO) from the British Columbia Securities Commission, initially announced on May 3, 2021. The MCTO was due to delays in filing annual financial statements for 2020, impacted by COVID-19 challenges related to audits. Empower expects to complete the necessary filings by May 31, 2021, and will issue bi-weekly updates during this process. The MCTO does not prevent non-insider shareholders from trading, although a general cease trade order could still be issued by regulators.
- The company is diligently working to complete financial filings by May 31, 2021.
- Ongoing transparency with shareholders through bi-weekly updates is maintained.
- Delay in filing annual financial statements raises concerns about regulatory compliance.
- Potential for a general cease trade order affecting all securities remains.
VANCOUVER BC / ACCESSWIRE / May 17, 2021 / EMPOWER CLINICS INC. (CSE:CBDT)(FRANKFURT:8EC)(OTCQB:EPWCF) ("Empower" or the "Company") is providing an update with respect to its previously announced management cease trade order (the "MCTO") issued by the British Columbia Securities Commission on May 3, 2021. The MCTO was issued in connection with the delay by the Company in filing its annual financial statements, management's discussion and analysis and related officer certifications for the financial year ended December 31, 2020 (collectively, the "Required Filings") before the prescribed deadline of April 30, 2021.
The MCTO was granted pursuant to Empowers application made under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203"). The Company requested and received an extension relating to the Required Filings for delays 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 Company's staff and accounting firm is working diligently with its auditors and the Company now expects to have the audit of the Required Filings completed, and the Required Filings filed, no later than May 31, 2021.
The Company is providing this status update in accordance with NP 12-203. The Company reports that: (i) there are no changes to the information contained in its default announcement on May 3, 2021, that would reasonably be expected to be material to an investor; (ii) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines set out under NP 12-203 and issue bi-weekly default status reports for so long as the delay in filing the Required Filings is continuing, which will be issued in the form of a news release; (iii) there has not been any other specified default by the Company under NP 12-203 and no such other default is anticipated; and (iv) there is no material information concerning the affairs of the Company that has not been generally disclosed.
The MCTO does not affect the ability of shareholders who are not insiders of the Company to trade their securities. However, the applicable Canadian securities regulatory authorities could determine, in their discretion, that it would be appropriate to issue a general cease trade order against the Company affecting all of the securities of the Company.
The Company is also taking precautions to protect shareholders interests by filing a Management Cease Trade Order application for Q1 2021 in the event there are further delays to the filing of year end 2020 results, but there is no assurance the MCTO will be granted.
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 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
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