Empower Clinics Inc Plans To Acquire Kai Medical Laboratory To Advance National Coronavirus Screening Programs

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Empower Clinics CEO Steven McAuley said Kai has a “new, high-complexity lab offering a wide range of testing services, which together we will use to meet the massive demand” for COVID testing in the States. -United

Empower Clinics Inc (CSE: CBDT) (OTCMKTS: EPWCF) revealed on Tuesday that it had signed a non-binding condition sheet to acquire the business of Kai Medical Laboratory LLC, based in Dallas, Texas, through a acquisition of shares or assets, subject to due diligence and customary closing conditions.

Empower, which is one of the largest operators of medical health and wellness centers in the United States, said Kai will help the company advance testing for the coronavirus (COVID-19).

Kai has been active in COVID-19 testing, battling the pandemic through RT-PCR testing and serological testing. While the RT-PCR test identifies whether a patient has an active virus, the serology or antibody test detects whether a patient has previously been exposed to the virus. Both of these test results are critical in managing outbreaks and the potential spread of the coronavirus.

READ: Empower Clinics sees second quarter revenue skyrocket thanks to record patient growth

Kai has developed two key programs in Texas and Arizona. The first program is a direct-to-consumer program that takes advantage of the ability of various healthcare providers to order and administer both the RT-PCR test and the antibody test. This increases the ability of the general population to be tested under certain circumstances. The second is a COVID-19 Employer Compliance Program (CHP) for business owners and employer groups to enable them to test and monitor their employees.

Currently, Kai has the capacity to perform over 2,000 RT-PCR tests in an eight hour shift using his Thermo Fisher QuantStudio 12k Flex test machine. The lab also uses a Roche Cobas 6000 for COVID-19 antibody testing.

The proposed acquisition includes an 8,000 square foot medical laboratory including a covered in-car testing center, with laboratory equipment, cash and current assets valued in excess of $ 1,750,000 and a corporate headquarters in the heart of the Dallas Medical District.

Under the proposed terms, Empower will assume a $ 1,200,000 equipment loan from the Small Business Administration (SBA), an economic disaster loan of $ 150,000.00 from the SBA and short-term liabilities of up to $ 250,000 at closing. In addition, Empower will issue 1,000,000 stock options of the company to the sellers.

“The addition of Kai Medical Laboratory to the Empower Clinics family allows us to significantly expand COVID-19 testing capacity and implement phase four of our national rollout plan,” said Steven McAuley, CEO of Empower Clinics, in a statement.

“Kai Medical has a newly constructed high complexity laboratory offering a wide range of testing services, which we will operate together to meet the massive demand for domestic COVID testing in the United States. Additionally, as flu season arrives and a potential second wave of COVID sets in, Kai Medical’s technical infrastructure enables Empower to capture the demand for testing and the additional growth revenue that comes with it. associates, ”he added.

Kai also offers a wide range of testing services ranging from hematology and hormone testing, endocrinology, toxicology and immunology through its CLIA and COLA accredited laboratory to hospitals, medical clinics and pharmacies.

“The Kai Medical Lab is inspired by science and built on integrity. Our mission is to change healthcare through science and innovative quality care by providing value-added services, accuracy and consistency, ”said CEO and Kai Medical Lab owner Yoshi Tyler .

Tyler has been the driving force behind the remarkable growth and success of Kai Medical Laboratory. She pursued a career in the healthcare industry for over two decades and held executive positions at a Fortune 500 pharmaceutical company for over thirteen years. She made Kai a powerhouse by investing in talented molecular scientists, quality assurance, and laboratory staff.

Empower is a vertically integrated health and wellness company with a network of corporate and franchise wellness clinics in the United States.

Contact author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

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