ALLIANCE GROWERS RETURN TO TRADING UPDATE
December 11, 2020 – Vancouver, BC – Alliance Growers Corp. (CSE: ACG; FWB:1LA; OTCPK: ALGWF) (“Alliance Growers” or “the Company) provides an update on its current regulatory filings status, activities and plans.
The COVID-19 pandemic has continued to cause business disruptions across all industries, including the cannabis space. The Company has expanded its work with its auditors to complete both the August 31, 2019 and August 31, 2020 annual Financial Statements, together with the interim filings for Q1, Q2 and Q3. Management anticipates completion of audits and other regulatory financial reporting and filings by early January, 2021. Despite the challenges, Alliance Growers is finalizing the necessary funds required to complete its audits and all related expenses to service providers and regulators. This is clearly the number one priority, but we continue to work on our business opportunities, such as TABU, so we are ready when trading resumes.
CBD Product distribution in the US with TABU Branded products
As previously reported, the Company has entered into a Letter of Intent (“LOI”) to acquire all the issued and outstanding shares of a private company, Tabu Canada Corp. (“Tabu”). The LOI calls for the completion of a Definitive agreement following a due diligence process, with closing anticipated contemporaneously with the return to trade following all filings being current and the cease trade lifted.
The business plan for Tabu, operating as a wholly owned subsidiary of Alliance Growers, calls for offering accessible CBD products, creating an interactive online environment, and providing leadership in the cannabis hospitality industry. Tabu will join the health industry, pet industry, beauty industry, eCommerce industry, hospitality industry, and more. Through an ambitious strategic plan, the Company will position itself to become an industry leader with premium cannabis products, infused with CBD and THC. This acquisition boasts significant wide-reaching distribution opportunities in the United States.
With the proposed acquisition of Tabu, Management plans to expand its Executive Team, split the roles of CEO and President and add new Qualified Cannabis-oriented Advisory Members and Board Members.
Cannabis Biotech Complex
Alliance Growers had entered into an Option Agreement with WFS Pharmagreen Inc. (“Pharmagreen”) and its subsidiary, 1155097 BC Ltd. (1155097), to create a strategic relationship, together with equity participation by Alliance Growers and Pharmagreen, whereby Alliance Growers has acquired a 10% equity interest in Pharmagreen’s subsidiary 1155097, with an option to increase to a 30% equity interest.
Given COVID and other challenges in the cannabis space, including a smaller market due to LP failures, PharmaGreen has decided to develop a smaller facility initially to reduce capex in order to accelerate construction time to get its products to the market as soon as possible. PharmaGreen is getting closer to closing on a $20M Bond Offering in Europe, which will fund the down-sized Tissue Culture Complex as well as Hemp operations in the US. Pharmagreen is modifying its engineering plans to reduce the size of the initial phase of the Tissue Culture Facility. The anticipated completion for construction of the facility is in Q4 of 2021.
New Maple Holdings/Canwe Growers
Alliance Growers owns an approximate 5% interest in New Maple Holdings, the parent company of its wholly owned subsidiary, Canwe Growers Inc. (“Canwe”), a private company in Ontario that has assembled a top tier growing and management team with the expertise to continue to expand as a Licensed Producer. Canwe was granted its LP license by Health Canada in December 2019 https://newmaple.ca.
Through its strategic relationship with Canwe, we will be working together in 2021 to produce and distribute Alliance Growers branded products beginning with Pre-Rolls made from the superior medical grade cannabis grown by the Canwe team.
Commenting on developing these opportunities and adding more, Dennis Petke, President and CEO of Alliance Growers stated, “We are continuously reviewing opportunities that fit with our Four Pillars corporate strategy designed to focus on projects that have realistic potential for success in the medical cannabis and other plant-based medicine markets. We continue to seek additional “self-financed” opportunities in product manufacturing and distribution similar to the partnership with TABU, a company which boasts significant US distribution potential. Securing opportunities that have concurrent financing will make it possible to complete partnerships and acquisitions to benefit all stakeholders.
Echoing Dennis Petke commentaries, Darren Hamans, President and CEO of Tabu Canada Corp. stated, “We are excited in the joint opportunity with Alliance Growers. The business partnership will strengthen both companies’ respective positions in raising capital and generating revenue, which will bring value to our shareholders.”
Also, the Company announces the cancellation, effective December 10, 2020, of stock options granted at prices between $0.11 and $0.20 for 3,675,000 options to directors, officers and consultants of the Company.
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 (products and services to cultivators), Strategic Investments in Cannabis Cultivators, CBD Oil Supply and Distribution, and Research and Technology.
For further information, please visit the Company’s website at www.alliancegrowers.com or the Company’s profile at www.sedar.com. If you would like to be added to Alliance Growers’ news distribution list, please send your email address to email@example.com.
For more information contact:
CEO, President and Director
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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 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. 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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