Alliance Growers Announces Letter Of Intent With WFS Pharmagreen, Including Subsidiary Canna Companion
June 30, 2016 – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG) (“Alliance Growers” or the “Company”) is pleased to announce it has signed a Letter of Intent with WFS Pharmagreen Inc. (“Pharmagreen”) where it has previously been agreed that Pharmagreen will provide information about its business and its wholly owned subsidiary, Canna Companion Products Inc. (“Canna”). Alliance Growers proposes to work with and investigate possible joint business interests and opportunities with Pharmagreen and Canna, including a potential full merger of Pharmagreen and Alliance Growers, subject to extensive due diligence and analysis.
Commenting on the acquisition, Dennis Petke, Alliance Growers President and CEO said, “We are absolutely thrilled to have entered into an LOI with Pharmagreen. This presents an opportunity for Alliance Growers to rapidly build out our “Four Pillars” Business Divisions ahead of schedule. This will definitely provide almost immediate value for Alliance Growers shareholders.”
The initial step is a proposal to obtain an exclusive license from Pharmagreen for the marketing, distribution and sales of all present and future Tissue Culture plantlet products utilizing the proprietary “Chibafreen Invitro Plant Production System” for the jurisdiction of Canada, for a fee of CAD$400,000. Consistent quality for mass production for the agriculture and marijuana industry stems from disease-free, genetically identical, healthy starting plant material that can only be truly achieved through Chibafreen Invitro technology.
The execution of the formal license agreement shall be on or before the closing of the Financing referred to below. Additionally both parties agree to possible further development of a “Full Spectrum DNA Botany Lab”, which would be the only such lab facility in Western Canada. A unique blend of clean room lab facilities including a botanical oils extraction lab would be built under the heading of “Botany Center”. Licensing opportunities for the “Botany Center” for the UK and European Union are subject to further negotiations and terms.
Peter Wojcik, CEO of Pharmagreen, stated, “We are very happy to be working with the Alliance Growers’ team. They are a very professional group that will complement our organization and they share our vision of where the industry is going and how to best to capitalize on this vision. When we received the endorsement of Tommy Chong, he said “The decision to work with Pharmagreen was simple, they are the best at what they do and they care about people and animals”. This strategic partnership with Alliance Gowers adds tremendous value to our business going forward.”
Subject to regulatory approval, Alliance Growers will use its best efforts to raise a minimum of CAD$400,000 to a maximum of CAD$500,000 on or before August 31, 2016 by way of a private placement offering of common shares (the “Financing”) to pay the license fee and continue its due diligence in Pharmagreen and its subsidiaries.
About Alliance Growers
Alliance Growers Corp (ACG: CSE) is a diversified cannabis company driven by the Company’s ‘Four Pillars’ Organization Plan – MMPR cannabis production facilities, distribution network, consumer products, and research and development. For further information please visit the Company’s corporate website at www.alliancegrowers.com or the Company’s profile at www.sedar.com.
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WFS Pharmagreen Inc. is a private company located in Mission, B.C. that is in the business of manufacturing and marketing cannabis-hemp based products for animals and owns the exclusive international rights to all present and future Canna Companion formulations and products. The Company’s executive management team and its advisory committee are composed of a significant mix of professionals that have been carefully gleaned from the fields of private and public company management; veterinary science; human medical science; marketing, branding and business development capped with unparalleled academic and celebrity endorsement. The Company also has a wholly owned subsidiary Canna Companion Products, Inc based in Washington State and operates a 5,000 sq. ft. product production and fulfillment center in Monroe Washington in support of its sales of the Canna Companion products. The Company’s celebrity endorsement is with world renowned Grammy award winning cannabis culture icon, Mr. Tommy Chong, of Cheech & Chong fame, who has never previously been involved with any public company.
On behalf of the board of directors of
ALLIANCE GROWERS CORP.
For more information contact:
VP Corporate Development
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, the news release contains forward-looking statements and information relating to the use of proceeds of the Financing, as well as the Company’s corporate strategy. The forward-looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company’s ability to carry out its business plan following the issuance of the required licenses by Health Canada. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the Company’s ability to identify and complete additional suitable acquisitions to further the Company’s growth as well as risks associated with the medical marijuana industry in general, such as operational risks in development and production delays or changes in plans with respect to development projects or capital expenditures; the uncertainty of the capital markets; the uncertainty of receiving the required licenses, production, costs and expenses; health, safety and environmental risks; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of the potential market; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and regulated regulations. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
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