Empower Clinics Inc (CSE:CBDT) (FRA:8EC) (OTCQB:EPWCF) announced that its Kai Medical Laboratory (KAI) has received an order to supply COVID-19 RT-PCR tests to two new film and televisions production that is expected to be worth more the C$750,000.
The transaction represents a repeat purchase of roughly 5,000 tests that Empower will process over a two-month period. The company received an initial order for 1,000 tests from a major TV and film production shortly after acquiring KAI in October and a follow-up order for 9,000 tests with more than C$1 million in November.
"Our team at KAI continues to deliver the type of performance to Tier-1 clients that is worthy of significant repeat business, that serves as unequivocal validation of our capabilities," CEO Steven McAuley said in a statement. "To this end, the magnitude of KAI's growth and success cannot be overstated as it continues to focus on very active business development and product development, setting a path toward significant North American growth in the midst of tripling its size. KAI is well on its way to becoming a national brand supported by our strong working capital position and a team dedicated to performance."
READ: Empower Clinics adds Kai Medical Lab President Yoshi Tyler to board of directors
As of September 1st, KAI had already processed tests for multiple films and TV productions in key US markets, including Los Angeles, Atlanta, New York and Dallas.
Meanwhile, KAI continues to progress on the design and build-out of its ongoing laboratory expansion to meet upcoming demand in a number of areas. In February, Empower announced plans to triple the size of KAI by the end of the first quarter, in anticipation of growing demand.
First, the company said it expects continued processing of RT-PCR tests for media productions, commercial accounts and enterprise-level clients. Additionally, Empower is watching for the full e-commerce impact of KaiTests.com and the national direct-to-consumer marketing programs for KAI Saliva, an FDA- and EUA-authorized and Health Canada-approved at-home saliva COVID-19 RT-PCR Test.
KAI Saliva allows travellers to obtain an RT-PCR test and result prior to arriving in Canada and the US, or any other countries with coronavirus travel restrictions.
KAI is also developing new direct-to-consumer test protocols that will expand the product offers on KaiTests.com in 2021 and beyond, the company said.
"With each passing month Empower gains more strength and velocity in every aspect of our business from KAI Lab in Dallas to our rapidly expanding clinic operations in Canada and our direct-to-consumer products such as KAI Saliva,” McAuley said. “All of which are amply funded well into the future with our strongest balance sheet ever, thanks to the receipt of more than $12 million in warrant conversions as of last month. We are on a path, a trajectory towards building a great health and wellness company across North America, and I look forward to providing our shareholders with further specifics."
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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