Empower Clinics Inc. announced that, pursuant to the terms of a membership interest purchase agreement dated April 30, 2019, it has completed the acquisition of Sun Valley Certification Clinics Holdings from Andrea and Dustin Klein and a minority shareholder through its wholly-owned subsidiary Empower Healthcare Assets Inc. for cash and share consideration having an aggregate value of $3,835,000.
Sun Valley operates a network of professional medical cannabis and pain management practices, with five clinics in Arizona, one clinic in Nevada, a tele-medicine platform serving California, and a fully developed franchise business model for the domestic cannabis industry.
Over the past five years, Dustin and Andrea have built one of the most reputable and organized clinic networks 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 physicians.
“The acquisition of the Sun Valley clinic group has fundamentally changed the direction and growth prospects for Empower,” said Steven McAuley, Empower’s Chairman & CEO. “Having Dustin and Andrea Klein join me in leadership to rapidly expand Empower’s clinic and distribution network across the United States is a major step toward our ambitious objectives.”
The Transaction is expected to create one of the largest clinic groups in the medical cannabis sector in the United States, which, together with Empower’s existing medical cannabis clinics, will expand Empower’s multi-state operations to a combined patient count of 165,000 patients throughout Washington, Oregon, Illinois, Arizona, Nevada and California, and the potential to rapidly expand the clinic network via the Sun Valley franchise program.