Empower Clinics JV Could Generate $US 30,000,000 In Annual Revenue From CBD Extraction ... But It Doesn't End There

At 165,000 patients, Empower Clinics (CBDT:CSE)  (EPWCF:OTCQB) has a database that almost every medical cannabis and CBD  company would kill for.  Add in the fact it is now on a ~ $USD 4,000,000  annualized revenue run rate for 2019 and it becomes the kind of company  small cap investors have been dying to find as they watch pretender  companies melt away.

But it doesn't end there.

CBD  extraction has been a key element of the company's vertical  integration. Producing its' own CBD products for its own patients just  makes sense.  Up until a couple of days ago, it was a sound strategy  that needed to be executed.  As of yesterday, execution arrived thanks  to a JV with extraction experts Heritage Cannabis that will light up the  Company's 5,000 sq ft facility in Oregon.  Empower brings the  infrastructure, Heritage brings the expertise and balance sheet.  The  result is a match made in shareholder heaven with initial annual  capacity of 6,000 Kg at ~ $US 5,000 per Kg, which adds up to $US  30,000,000 in potential revenue.

We emphasize potential  because  nobody has started selling anything yet and the facility isn't expected  to begin producing for another 3-4 months.  However, with a built in  patient database and talks already having commenced for white label  products, Empower is on its way.  Moreover, "potential" cuts both ways,  with capacity capable of increasing 2x - 3x without much trouble given  the size of the facility.

Can Empower successfully execute its extraction plan?  It's a legitimate question, with a blow away answer.

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The Company's new CEO, Steven McAuley, who replaced the previous management team in January, is Six Sigma certified under the quality initiative of legendary GE chairman Jack Welch. We've  never seen a Six Sigma certified CEO in the Canadian small cap markets.  Never.

Grab your favourite beverage and settle in to watch what may be your next great small cap investment.