Proactive Investors - Empower Clinics Inc (CSE:EPW) said it has signed a letter of intent (LOI) with Crescita Capital LLC for a C$5 million equity capital facility.
The capital facility is intended to be used for general working capital purposes, strategic business development and expansion of clinical trial assets.
Under the LOI, Empower will have three years to utilize the capital to develop its business. It allows the company to draw down on the facility, at the discretion of management. The drawdowns are not mandatory, allowing Empower to selectively decide when capital is needed.
"We are thrilled with the opportunity to work with the Crescita team who have embraced Empower's path forward to becoming a Site Management Organization (SMO), with the goal of impacting the lives of patients through research and clinical trials,” said Steven McAuley, Empower chairman and CEO in a statement.
"Having access to flexible capital as and when the company requires allows us to plan for long-term success with a growth strategy based on sustained cash flows,” he added.
McAuley continued: "At the core the company has always provided patient care, facility management and the administration of our healthcare professionals. These attributes are required to successfully manage sites for clinical trials. We play the all-important role of providing oversight, direction and support to the PI's and their patients ensuring the sites all operate within the guidelines of the study protocol as set by the sponsor and CRO."
The company also announced that it entered into debt settlement agreements with creditors on May 30, 2023, for the settlement of debt totalling C$68,900 in aggregate.
Empower is an integrated healthcare company with multi-disciplinary clinics, a Canadian medical device company and has launched its first clinical research site becoming a Site Management Organization (SMO) in Dallas, Texas.