Empower Clinics Inc (OTCMKTS:EPWCF) (CSE:EPW) soared Thursday as it announced plans to open a hemp-based cannabidiol extraction facility in the Portland, Oregon, area during the second quarter.
The medical cannabis company said in a statement that it has entered a tentative deal to buy and license extraction equipment from Aibeida LifeTech Ltd. The first system is expected to have the capacity to produce 6,000 kilograms of extracted product per year.
Shares of Empower Clinics jumped 5% to C$0.10 in Thursday’s Canadian trading and rocketed 35% to US$0.10.
"Achieving vertical integration has been an objective of mine from the outset as we attempt to connect the science behind hemp-derived CBD based therapies and the efficacy of physician recommended treatment options made available through our clinic network, online or through retail partnerships," Empower CEO Steven McAuley said.
Shuang Xie, Aibeida's director and chief scientist, will oversee and manage the Empower CBD extraction facility.
Under the proposed terms, Empower will pay Aibeida US$1 million in cash at closing as well as a US$250,000 USD performance holdback, for a total cash payment of US$1.25 million.
In addition, Empower will issue Aibeida common shares valued at US$1 million as well as additional shares having an aggregate value of US$1 million and vesting in quarterly installments over 36 months following closing.
The consideration is expected to be based on a deemed price per share equal to the 10-day volume-weighted average closing price on the Canadian Securities Exchange on the last business day before closing.
Earlier this week Empower Clinics announced that it intends to partner with Datametrex AI Limited (TSX:DM) and its subsidiary Canntop AI Inc to use artificial intelligence to analyze patient data.
Contact Dennis Fitzgerald at [email protected]