ALLIANCE ENTERS INTO BINDING LETTER OF INTENT WITH WFS PHARMAGREEN FOR DEVELOPMENT OF THE BOTANY CENTRE
December 28, 2017 – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG; FWB: 1LA; WKN: A2DFYX) (“Alliance Growers” or the “Company”) is pleased to report that it has entered into a binding Letter of Intent (“LOI”) with WFS Pharmagreen Inc. (“Pharmagreen”), and its proposed subsidiary BC New Co, to create a strategic relationship, together with equity participation by Alliance Growers and Pharmagreen, whereby Alliance Growers will acquire an equity interest in Pharmagreen’s subsidiary BC New Co (the “Proposed Transaction”).
The execution of this LOI, to be followed by a formal Definitive Agreement, initiates the development of the Cannabis Botany Centre that Alliance and Pharmagreen have been working on for over one year. Pharmagreen principals have purchased the land required to build the Cannabis Botany Centre East of Mission, BC (the “Land”). The Land will be leased to own to BC New Co.
Alliance Growers will purchase BC New Co Shares equal to 15 % of the issued BC New Co Shares for total consideration of $1.5 Million CDN by March 15, 2018. Alliance Growers will have an option to increase its non-dilutive interest in BC New Co to 30% by the investment of a further $1.5 Million CDN by June 15, 2018. Alliance Growers made an initial payment of $250,000 toward the first obligation on December 21, 2017.
Alliance Growers will elect one of the three Directors of BC New Co, which will build and operate the Cannabis Botany Centre to permit the growth and sale of tissue culture plantlets, and storage of strains and nursery plants to wholesale, retail and medical markets.
The development of the Cannabis Botany Centre is consistent with Alliance Growers business plan to be in partnership with a range of cannabis sector business opportunities including strategic investments in ACMPR licensed cannabis producers. Alliance Growers has already acquired interests in two ACMPR applicants, most notably Canwe, a private company based in Ontario that has applied for its ACMPR license and is currently in the review and security clearance stage.
Commenting on the development of the Cannabis Botany Centre, Dennis Petke, Alliance Growers’ President and CEO, noted “We are very fortunate to be able to commence construction as soon as reasonably possible, rather than having to wait several months under the typical ACMPR application scenario. This shortens our timeline to receive approval for an ACMPR application.
Finalizing the Pharmagreen deal is one of the most significant milestones in the Company’s business plan. It represents the beginning of the execution of multiple initiatives that Alliance Growers has been developing over the last year. Now that Alliance Growers has secured funding of over $1M from the recent private placement and the exercise of warrants and options, the Company will be executing on additional acquisitions of interests in ACMPR applicants, development of the Canna-App and finalization of its Pharmaceutical Grade CDB Oil partnership with the Israeli Medical Cannabis Company. We are extremely pleased that the market has come to understand and appreciate our diversified global business model as evidenced by the strong performance in the Company’s recent stock price. The Company has already received significant interest in additional financings slated for January and February of 2018 to ensure the Company is adequately capitalized to execute on all aspects of our business model. All stakeholders of Alliance Growers will benefit from the arrangements we are making in the cannabis cultivator space. We look forward to announcing our new complementary acquisitions and as we move forward. Alliance Growers wishes everyone a happy, healthy and prosperous new year”.
About Alliance Growers
Alliance Growers Corp is a diversified cannabis company driven by the Company’s ‘Four Pillars’ Organization Plan – Cannabis Botany Centre, Strategic ACMPR Investments, CBD Oil Supply and Distribution, and Research and Development.
Alliance Growers has finalized its a new business partnership with WFS Pharmagreen Inc., to jointly develop and operate a 40,000 square foot facility to be the first of its kind in Western Canada to house a DNA Botany lab, extraction facility and Tissue Culture Plantlet Production facility to service the Cannabis market and agriculture market in general. The proposed Cannabis Botany Centre will grow Cannabis plantlets using proprietary tissue culture propagation, specifically the “Chibafreen Invitro Plant Production System”, which assures consistent composition and purity of each plantlet for the growers.
Further, Alliance Growers has been negotiating to obtain other exclusive Canadian distribution agreements for certain proprietary products for support of the Cannabis growing industry in addition to possible partnerships with Licensed Producer Applicants at various stages in the Health Canada License process.
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On behalf of the board of directors of
ALLIANCE GROWERS CORP.
President and CEO
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