October 26, 2016 – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG) (“Alliance Growers” or the “Company”) is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with Botanical Research In Motion International Inc. (“BRIM”) to build a 40,000 square foot facility (the “Botany Centre”) to service the Cannabis market specifically and the agriculture market in general. BRIM will also grant to Alliance an exclusive Canadian license (the “License”) regarding certain of BRIM’s proprietary technology.
The License granted to Alliance will allow it to jointly develop and operate multiple Botany Centres in Canada and will include the following:
1 – B.R.I.M.’s proprietary “Chibafreen Invitro Plant Production System”
Utilizing its proprietary state of art clean tissue culture lab room designed to produce over one million Tissue Culture Plantlets per year. The design is scalable and designed for all flora to serve the entire agriculture industry.
2 – B.R.I.M.’s proprietary Cryotissue Cold Storage
Utilizing the one-of-a-kind Cryotissue Cold Storage technology for tissue culture preservation and regeneration as needed on long term basis.
3 – Extraction Lab
Provide custom profiles for extraction for botanicals oils for retail market.
Provide extraction services as retail services to cultivators.
4 – Botanical DNA Services Laboratory
Certifying plant tissue as the genetic level.
Additional DNA mapping services.
5 – B.R.I.M’s proprietary research for cannabis for large commercial scale micro propagation production when permitted.
The MOU will be superseded by a definitive agreement (the “Definitive Agreement”) to be completed on or before November 30, 2016.
The significant terms of the deal include the following:
- Alliance will issue to BRIM a total of 6,000,000 common shares and 3 million warrants to be released in stages;
- Cash payments of $75,000 on execution of the MOU and $75,000 on execution of the Definitive Agreement;
- Pay a Royalty to BRIM on each Botany Centre in Canada that that is consistent with similar commercial operations.
The initial Botany Centre and land shall be held by a wholly owned subsidiary of Alliance. Alliance shall be solely responsible for the cost of construction of the Botany Centre, and be responsible for all management fees, salaries, consulting fees and other operating costs related to the Botany Centre.
BRIM also agrees to grant Alliance first right of refusal on exclusive licenses in various states in the US, and other countries or regions as they are identified, whereby Alliance will jointly operate the clean room certified laboratories making up a similar Botany Centre in those locations.
Commenting on the MOU, Dennis Petke, Alliance Growers President and CEO said, “We are pleased to finally be able to announce that we have reached an agreement with BRIM for the exclusive license of the BRIM technologies and the joint development of multiple Botany Centres in Canada. The development of these Botany Centres in Canada and in other countries will significantly add to the value of Alliance, along with interests we intend to acquire in multiple ACMPR facilities”.
Mr. Petke continued, “Alliance continues to develop its business model which includes becoming a leading supplier of high quality CBD oil to multiple channels in the Cannabis industry for both medical and recreational use in Canada and the US. We are taking steps and developing our business model to be ready for the legalization of Cannabis in both Canada and the USA. We appreciate and thank our new investors and all shareholders for their continued support as we work towards realizing our vision of becoming a successful global cannabis company”.
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.
Alliance is finalizing a Definitive Agreement with Botanical Research In Motion International Inc., for a Canada Exclusive License 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 facility 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. As well, Alliance has been negotiating to obtain exclusive Canadian distribution agreements for certain proprietary products for support of the Cannabis growing industry in addition to possible partnerships with existing MMPR licensed and soon-to-be licensed facilities. 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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On behalf of the board of directors of
ALLIANCE GROWERS CORP.
President and CEO
For more information contact:
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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.
The forward-looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.