October 18, 2018 – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG; FWB: 1LA; WKN: A2DFYX; OTC: ALGWF) (“Alliance Growers” or the “Company”) is pleased to announce that the Company has engaged Groupe Icore to manage the construction of the Company’s Quebec facility undertaking an Access to Cannabis for Medical Purposes Regulations (“ACMPR”) application via BiocannaTech, the Company’s wholly ownedsubsidiary located in Ville Mont Royal, Quebec. Alliance has leased the adjacent building for Phase 2 expansion on favourable terms. These two buildings are the only two locations in the Town of Mount Royal (“TMR”) that are permitted for marijuana production now that a moratorium on granting further cannabis-related industries to operate within the Township.
The Company benefits from leasing the adjacent property in two primary ways. Firstly, the two buildings can be joined to form one continuous facility thus yielding certain construction cost efficiencies. Secondly Phase 2 features a loading dock and approximately 2,000 square feet of administration space, thus increasing the amount of grow space in Phase1, as the portion allocated for admin will no longer be required. The section that joins the two buildings is designed to provide a second loading dock. Visit www.alliancegrowers.com to view the architectural renderings of the expanded facility.
In addition to the completion of the architectural design plans, the completion of the permits and the commencement of demolition for Phase 1, announced September 27, 2018, Group Icore has procured a custom, high-quality heating, ventilation and air conditioning (“HVAC”) system, to further ensure the facility is equipped to cultivate the best quality cannabis.
Through the Company’s strategic partner, Canwe, Alliance has access to the original grow team that developed and implemented the system that made MedReleaf one of the single most profitable Licenced Producers in Canada. The main advantage to utilizing one of the best grow teams in Canada is that it maximizes BiocannaTech’s ability to become a low-cost producer of high-quality product for distribution to both medical and recreational customers.
Dennis Petke, President and CEO of Alliance Growers commented: “Having a company with a reputation for quality and for keeping projects within the proposed budget, like Group Icore, greatly increases our ability to meet construction timelines and manage costs at what we expect to result in world-class facilities. Dennis Petke further commented on legalization of adult-use cannabis in Canada “Alliance is fortunate to be a cannabis company in Canada, the first G-7 country to be forward thinking enough to make the legalization of recreational cannabis happen nationwide in a timely manner. Alliance Growers is well positioned to take full advantage of this legislation through an increased customer base for tissue culture plantlets, sales of flower and CBD products. The advantages of legalization are that it opens a retail market in addition to a medical market, loosens regulatory restrictions for access, expands distribution and expands the industry to billions of dollars. The cannabis industry will now evolve at a very quick pace. Today’s decision on legalization is another step forward for our Company as we continue to take Alliance Growers to where the cannabis market is going and not where it is today.”
The Health Canada ACMPR authorizes licenses required for cultivating and processing cannabis, the sale of cannabis for medical purposes and analytical testing and research in relation to cannabis. Applicants must clear a series of stages to ultimately receive such licenses. Now that the ACMPR “Ready to Build” stage has been reached by BiocannaTech, the process to officially commence development of the BiocannaTech facility infrastructure is now fully underway.
To recap, the progression of development at the BiocannaTech facility will take place in 3 phases:
Phase 1- 10,000 sq. ft existing facility
– Alliance Growers will provide financing and other resources to build out its wholly-owned subsidiary, BiocannaTech’s medical marijuana facility in the town of Mount Royal, Quebec, in preparation for the inspection from Health Canada.
– construction plans include a retro fit of the existing building that was previously used for cold storage. This is ideal as insulated panels are already in place.
– there is no need to allocate permanent space for a “mother” room as Alliance Growers will be providing plantlets in late 2019 to the facility from its Cannabis Biotech Complex in Deroche, BC.
– permits for construction are now in place, with estimated completion by mid-January 2019
– estimated license to produce for first cultivation targeted for the end of February 2019, with presales inspection by mid April 2019.
Phase 2- 17,000 expansion
– Alliance Growers has signed the lease to acquire another 17,000 square feet in a second building, including 15,000 for growing and 2,000 for existing offices, which includes a full loading/shipping dock.
– the second building is directly adjacent to the existing facility and will be connected to add more space and improve operating efficiency.
Phase 3- Additional ACMPR licenses in other Provinces
– After receiving the ACMPR in Quebec, Alliance Growers is planning an application for an ACMPR license in BC, and potentially Alberta as well.
About Alliance Growers Corp.
Alliance Growers is a Diversified Global Medical Cannabis Company driven by the Company’s ‘Four Pillars’ Organization Plan – Cannabis Biotech Complex, Strategic ACMPR Investments, CBD Oil Supply and Distribution, and Research and Technology.
Alliance Growers is working with Pharmagreen Biotech Inc. advancing a new business partnership, to jointly develop and operate a 62,000-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 Cannabis Biotech Complex’s main facility is the Cannabis Biotech Centre which will grow Cannabis plantlets using proprietary tissue culture propagation, specifically utilizing the “Chibafreen Invitro Plant Production System”, which allows for more tissue cultured plantlets to be produced in less space and less time.
Through its wholly owned subsidiary, BioCannaTech Alliance is in the final expedited phase of Health Canada’s “Access to Cannabis for Medical Purposes Regulations” (ACMPR) approval for the production and sales of Medical Marijuana. BioCannaTech Inc. has a leased a 10,000 square foot facility in Mont-Royal, Québec with permits in place from the municipality to renovate the facility. Initial expansion plans include an adjacent 17,000 square foot facility, comprised of 15,000 square feet of growing space, and 2,000 square feet of existing offices and a full loading/shipping dock.
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