Empower Clinics Announces Proposal For Division Spin Out

VANCOUVER BC / ACCESSWIRE / August 1, 2023 / EMPOWER CLINICS INC. (CSE:EPW)(OTC PINK:EPWCF) ("Empower" or the "Company") announces today, after a strategic review, the Company has determined that it intends to complete a direct spin out of a wholly owned subsidiary of the Company ("Subco") and vend in a healthcare artificial intelligence (AI) technology or service company (the "Target"). The transaction is currently anticipated to proceed by way of plan of arrangement (the "Arrangement") pursuant to which it is anticipated the Subco will be spun out to as a new issuer on the Canadian Securities Exchange (the "CSE"), and in conjunction the Target will be acquired. The various transactions will be subject to final tax and legal structuring considerations. Empower shareholders will receive Subco shares distributed directly to the shareholders of Empower on a pro-rata basis.

Steven McAuley, Chairman & CEO of Empower commented, "As we have progressed through our previously announced strategic reviews, it became evident that unlocking shareholder value in the markets going forward is not only prudent, but an important commitment to our shareholder base." He continues, "By creating a spin out that is focused as a pure play healthcare AI company and platform, we believe it simplifies the message and direction of Empower and Subco, and allows shareholders and investors to know exactly the direction for each company."

Further Details on the Target
Artificial intelligence ("AI") and machine learning (ML) are making significant impacts to industries around world, and the healthcare sector will be a huge beneficiary of these technology advancements.

The Company has been working through due diligence on numerous AI technology platforms and companies that are building and producing interesting, powerful and exciting advancements.

Empower through its transition and development into research and clinical trials is positioned to understand elements of this significant sector of healthcare and drug development. Patient recruitment for clinical trials must go through major milestones of pre-screening, screening and compliance review, as outlined in the specific protocols from each trial created by the sponsors and CRO's within the pharmaceutical industry.

The application of AI throughout these key steps not only has the potential to significantly impact speed, accuracy, and efficiency of these processes, it also could bring far greater success rates in the recruitment of patients.