Empower Clinics Inc. announced it has entered into a non-binding term sheet to acquire the business of Sun Valley Certification Clinics Holdings, a network of medical marijuana doctor certification clinics based in Arizona.
Sun Valley operates professional medical marijuana and pain management practices, with five clinics in Arizona, one clinic in Las Vegas, a tele-medicine platform serving California, and a fully developed franchise business model for the domestic cannabis industry, which is believed to be the first of its kind in the United States.
Dustin and Andrea Klein have been the owners/operators of Sun Valley since launching their first clinic in 2013, working within the guidelines of the Arizona Department of Health Services Medical Marijuana Program to assist and certify more than 20% of the current Arizona patient population. The Kleins also launched Sun Valley Science, LLC (“SVS”) in order to expand their clinic offerings by providing patients with CBD and cannabidiol products to improve and support patients’ quality of life.
Dustin Klein commented, “Sun Valley supports Empower’s new vision and strongly believes that our patients, our community, and our employees will benefit by joining the Empower team.”
Over the past five years, Dustin and Andrea have built a reputable and organized clinic network in Arizona, developing a patient list of more than 45,000 unique patients, and have performed over 61,000 certifications to date. Sun Valley supports its patients with a dynamic dedicated team consisting of 52 staff, including 30 doctors.
Completion of the transaction will be subject to various conditions, including entry into a definitive agreement, completion of due diligence, and receipt of all required shareholder, manager, third party and regulatory approvals, including approval of the CSE. Closing will also be conditional on Empower completing a debt or equity financing to raise minimum gross proceeds of $3,000,000 USD. Closing of the transaction is expected to occur on or about March 15, 2019.