Empower Clinics Inc (CSE:CBDT) (OTCMKTS:EPWCF) CEO Steven McAuley told shareholders on Thursday that the vertically-integrated wellness company has a “clear path to profitability” as it moves into 2020.
The CEO's comments come as the company posted its third-quarter results, boosted by increased patient visits to the company’s network of clinics in the US.
During the three-month period, clinic revenues increased by 137%, thanks to patient visits. Over 5,800 patients generated revenue of US$663,000 compared to the same quarter last year, with around 1,800 visits for revenue of US$280,000.
"Our focus on operational excellence and cost controls are key contributors to strong year-over-year growth numbers and the reduction in direct clinic expense, as we continue to serve the 165,000 patients in our database," said Steven McAuley, CEO of Empower.
The Vancouver-based firm is repositioning itself to become a vertically integrated health and wellness brand with a network of over 165,000 patients.
It recently opened its first hemp-derived CBD extraction facility in greater Portland, Oregon, with the first extraction system expected to have the capacity to produce 6,000 kilograms of extracted product annually.
Empower said it expects preliminary production of its Sollievo CBD line to take place in the extraction center in the fourth quarter of 2019.
"The company is beginning to fulfill its promise of vertical integration with the build-out of the extraction and production center in Portland, Oregon plus with an increased focus on our proprietary CBD product lines and diversified clinic revenues, the company has a clear path of growth and profitability going forward,” McAuley said in a statement.
Net loss for the quarter was US$505,000 compared to US$379,000 during the year-ago period, primarily attributable to the increase in operating expenses.
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