July 27, 2016 – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG) (“Alliance Growers” or the “Company”) is pleased to report that, further to its press release of June 30, 2016, the Letter of Intent with WFS Pharmagreen Inc. (“Pharmagreen”) on obtaining an exclusive license for the commercialization of the “Chibafreen Invitro Plant Production System” in Canada is progressing much better than expected and has led to additional joint business opportunities to be explored. The Exclusive License from Pharmagreen covers 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. Alliance has advanced on its discussions regarding additional joint business interests and opportunities with Pharmagreen, including a potential full merger of Pharmagreen and Alliance Growers, subject to continued extensive due diligence and analysis.
Growing Cannabis using tissue culture propagation, specifically the “Chibafreen Invitro Plant Production System”, assures consistent composition and purity of each plantlet for the growers, regardless of where and by whom the plants are cultivated. Licensing Pharmagreen’s proprietary process provides tremendous advantages including rapid and efﬁcient growth of plants that will result in 30-50% shorter production period. Plantlets that are produced under uniformly controlled environment in the protected area are free from pest insects/pathogens and the disturbance of outside weather. Additionally, such plantlets are of very high quality, disease free and geared for optimal growth. Each plantlet will always have the same genetic makeup as its parent stock.
Commenting on the business development opportunities, Dennis Petke, Alliance Growers’ President and CEO stated, “We could not be more impressed, the more we delve into the breadth and depth of Pharmagreen’s innovations, that their technology will give Alliance the ability to generate tremendous cash flow from the burgeoning Cannabis industry, as well as the agriculture industry in general. In addition to the Tissue Culture plantlet products, we are impressed with the development and rapid growth of Pharmagreen’s subsidiary, Canna Companion, and the strong involvement of celebrity Tommy Chong”.
While moving toward the execution of a formal license agreement, both Alliance and Pharmagreen 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.
From a monetary perspective, Pharmagreen’s business initiatives are on the cutting edge of functional innovations that not only bear significant profit margins, but also provide a model of micro propagation technology that can be applied across the entire agriculture industry on a mass production scale with “Chibafreen Invitro Plant Production System”. To put this in perspective, potential revenue from this system is only limited by the size of the production facility.
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’s animal products developed under its 100% owned subsidiary Canna Companion Products, Inc based in Washington State, U.S.A., operates a 5,000 sq. ft. facility for product formulation,, fulfillment and customer care in Monroe, Washington This center supports its U.S. based sales for all levels, distributors, dealers, and e-commerce of the Canna Companion products via www.cannacompanionusa.com .
On behalf of the board of directors of
ALLIANCE GROWERS CORP.
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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.
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