Empower Clinics to Build 1st CBD Extraction Facility in Oregon

Empower Clinics
Credit: Empower Clinics

Empower Clinics (CSE: EPW) (OTCMKTS:EPWCF) is planning to open a hemp-based CBD extraction facility in greater Portland, Oregon.

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The company, which owns and operates a network of medical cannabis clinics, is preparing to open the extraction plant in the second quarter of 2019. It is expected to produce 6,000 kg of extracted product per year.

The facility is expected to provide Empower with vertical integration into the CBD supply chain, producing isolates, distillates and crude oil that have shown successful third-party test results in the initial test facility, according to a statement.

Empower Signs Deal for Extraction Equipment

Empower has agreed to buy specialized extraction equipment from Aibeida LifeTech Ltd.

Under the deal, Aibeida will sell and license extraction equipment to Empower and provide facility build-out and set-up services. Further, Aibeida will provide management and maintenance services for the first Empower CBD extraction facility.

Aibeida’s director and chief scientist, Dr. Shuang Xie, in Canada will oversee and manage the Empower CBD extraction facility.

Under the proposed terms, Empower will pay Aibeida $1 million cash at closing of the proposed transaction and a $250,000 performance holdback.

In addition, at closing, Empower will issue Aibeida common shares in the capital of Empower with a value of $1 million, and additional shares having a value of $1 million, which will vest in quarterly installments over 36 months following the closing.

The transaction is subject to various conditions, including entry into a definitive agreement, shareholder and board of director approvals, third-party and regulatory approvals.

Closing of the transaction is expected to occur on or about March 30, according to Empower.

Empower CBD Extraction Facility

The Empower CBD extraction facility will be located in the foothills of Mt. Hood, Oregon.

The leased 5,000-sq.-ft. facility will support the first extraction production lines with the potential to house up to four of the same production systems at industrial scale.

The company intends to allocate 1,000-sq.-ft. for CBD product manufacturing for wholesale and to produce its own Sollievo product lines and that of Sun Valley Clinics, which the company recently announced its intention to acquire.

The steel-framed facility on concrete slab with high ceilings in an industrial park will be located 40 minutes southeast of Portland airport. It is expected to use 200 kg of hemp biomass per day to produce 20 kg of CBD extract.

The facility will be designed to house up to four of Aibeida’s HPLC extraction systems and 1,000-sq.-ft. of CBD product manufacturing.

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