Empower Clinics Inc (OTCMKTS:EPWCF) (CSE:CBDT) revealed on Tuesday that through its wholly-owned subsidiary Empower Healthcare Assets Inc, it has completed the acquisition of Dallas, Texas-based Kai Medical Laboratory LLC from KTM5 Holdings LLC, NULV11 LLC and Consistent Investment Group LLC.
According to the terms of the deal, Empower has agreed to take on short and long-term liabilities amounting to US$1,971,857. In addition, it will issue 1,000,000 company stock options to the owners.
Empower, which is one of the largest operators of medical health and wellness centers in the US, said Kai would help the company advance coronavirus (COVID-19) testing.
Kai has taken an active role in COVID-19 testing, battling the pandemic through RT-PCR testing and serology testing. While the RT-PCR test identifies if a patient has an active virus, the serology or antibody test detects if a patient has previously been exposed to the virus. Both of these test results are vital to managing outbreaks and the potential spread of coronavirus.
“As a result of this capability, Empower is now able to expand phase four of its COVID-19 testing rollout, which was first announced on April 27, 2020, beginning with Phase 1 in-clinic testing and culminating with a nationwide roll-out across the United States (Phase 4),” said the company in a statement. Empower said that during Phase 4, it will service enterprise-level clients, including movie and television studios that require “reliable, accurate, fast and mass batch testing capabilities” in order to resume production safely.
“Adding Kai Medical Laboratory to the Empower Clinics family enables us to dramatically expand COVID-19 testing capability, for our get back to work and get back to school initiatives as part of our national rollout plans,” said Empower Clinics CEO Steven McAuley in a statement.
“Kai has a newly built high-complexity lab offering a wide array of testing services, that we will leverage to serve the massive demand for national COVID testing in the U.S. Additionally, as flu season arrives and a potential second-wave of COVID takes hold, the technical infrastructure of Kai Medical allows Empower to capture testing demand and bring new technical testing products to market,” he added.
The acquisition includes an 8,000-square-foot medical lab, including covered drive-up testing center, with lab equipment, cash and current assets worth more than $1,750,000 and a corporate office in the heart of the medical district in Dallas.
Kai also offers a wide array of testing services ranging from hematology to hormone testing, endocrinology, toxicology, and immunology through its CLIA and COLA accredited lab to hospitals, medical clinics, and pharmacies.
"Kai is inspired by science and built on integrity and joining Empower allows our highly skilled personnel and state-of-the-art instrumentation to expand from a local community level to a national level,” said Kai Medical Laboratory founder Yoshi Tyler.
Tyler has been the driving force behind Kai Medical Laboratory's remarkable success. She has built Kai into a powerhouse by investing in talented molecular scientists, quality assurance and lab staff.
“With Empower providing an expansion of resources, Kai will be in a position to help the national need for expanded COVID-19 testing as the second wave commences,” added Tyler.
Empower has assumed liabilities comprising a SBA loan of US$1,139,577, a US$150,000 SBA Economic Injury Disaster Loan, revolving debt of US$89,478 and short-term liabilities of up to US$313,963, totaling nearly US$1,971,857.
Contact the author Uttara Choudhury at [email protected]
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