November 15, 2016 – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG) (“Alliance Growers” or the “Company”) is pleased to announce the Company is in the final negotiation stage for a strategic equity arrangement to assist in financing CannaCompanion Products, Inc. (“Canna”). Canna is a wholly owned subsidiary of WFS PharmaGreen Inc that produces and sells safe and effective cannabinoid infused pet products www.cannacompanionusa.com.
The arrangement calls for Alliance Growers to invest CAD$300,000 on favourable financial terms with regard to pricing and warrants, in return for an exclusive long term (“Cannabinoid”) CBD oil supply contract when Canna Companion expands to the Canadian market planned for 2017.
This strategic alliance is the first of many planned initiatives that will provide Alliance Growers with future revenues from the sales of its pharmaceutical grade CBD Oil to the $21Billion Marijuana and Hemp Industry.
The Company’s current strategy and focus since announcement of the cannabis focused Botany Center & Lab with BRIM is threefold;
- Jointly develop cannabis focused Botany Centers around the world that provide services and plantlets to growers in the respective country.
- Seek out opportunities and joint ventures and investments agreements with growers in exchange for long term plantlet supply contracts, and off take agreements.
- Become a leading supplier of pharmaceutical grade CBD oil globally.
Commenting on the agreement, Dennis Petke, Alliance Grower’s President and CEO stated, “We are very proud of the achievements to date that Alliance Growers has accomplished toward our goal of becoming a truly global cannabis company. We have multiple CBD oil supply contracts and potential investments with growers under negotiation within North America and in other countries. In addition to Alliance Growers providing services and plantlets to growers of all sizes, it is our vision to become the leading supplier of pharmaceutical grade CBD oil globally through long term supply contracts”.
Mr. Petke continued, “We look forward to unveiling our arrangements for participation in grow operations in exchange for long term plantlet supply contracts and off take agreements for product that Alliance Growers will use for flower and CBD oil sales. And in the coming months, Alliance Growers will unveil certain global arrangements currently under negotiation”.
As previously announced in news release on October 26, 2016 and November 7, 2016, Alliance Growers has been granted a license that will allow it to jointly develop and operate multiple cannabis focused Botany Centres in Canada and will include the following:
The License granted to Alliance Growers will allow it to jointly develop and operate multiple Botany Centres in Canada specializing in the Cannabis industry 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.
In addition to the previously announced issuance of 6 million common shares to BRIM and/or persons designated by BRIM, at a deemed price of $0.135 and 3 million warrants exercisable at $0.27 for a period of 2 years to be held in escrow and released in stages, the Company will pay a finder fee in cash and/or shares in the amount of $79,500 for the introduction of BRIM to Alliance.
To finance the development of the cannabis focused Botany Centre, the Company has engaged DGWA, the German Institute for Asset and Equity Allocation and Valuation, known and respected as one of the leading German Corporate Boutiques for global small and mid-cap consulting and investments. As reported on August 18, 2016, Alliance has applied for a listing on the Frankfurt Stock Exchange, as the beginning of a European partnership with DGWA.
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 Growers is finalizing an 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 Growers 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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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 are developed under its 100% owned subsidiary Canna Companion Products, Inc. based in Washington State, U.S.A. Canna operates a 5,000 sq. ft. facility for product formulation, fulfillment and customer care center in Monroe, Washington in support of its U.S. based sales for all levels, distributors, dealers, and e-commerce of the Canna Companion products, www.cannacompanionusa.com.
DGWA, the German Institute for Asset and Equity Allocation and Valuation, is a partner for the European Financial Markets – known and respected as one of the leading German Investment Banking Boutiques for providing global small and mid-cap Financial Advisory Services.
They build solid, substantial and comprehensive bridges for listed and non-listed companies to investors, financial institutions and multipliers like press and media and offer finest financial engineering solutions, tailor made for their clients.
DGWA’s management team runs a 25-year track record in trading, investing and analyzing SME’s around the world. It has been so far involved in over 250 IPO’s, financings, bond issues, dual listings and corporate finance transactions, as well as corresponding road shows and awareness campaigns.
DGWA is based in Frankfurt, home of the European Central Bank, centre of Europe’s financial activities and neighbours with various leading and specialized financial institutions – located in the heart of Europe and easily accessible via one of the largest airports in the world.
About the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse: FWB):
According to the FWB website, an estimated 45 percent of Europe’s top 300 companies have their primary listing on the London or Frankfurt exchanges. The Frankfurt Stock Exchange is an international trading centre with more than 215 market participants, 50% of which are from countries other than Germany. The FWB is one of the world’s largest stock exchange for securities trading and ranks 10th in the “Trillion Dollar Club”. With 90 per cent of its turnover generated in Germany, namely at the two trading venues Xetra® and Börse Frankfurt, it is the largest of the seven regional securities exchanges in Germany. Besides the specialist trading at Frankfurt Stock Exchange, its fully electronic trading system Xetra® is one of the leading electronic trading platforms in the world. With the launch of Xetra in 1997, the Frankfurt Stock Exchange strengthened its competitive position and created attractive framework conditions for foreign investors and market participants. The FWB was founded over four hundred years ago in 1685 and is operated by Deutsche Borse AG.
On behalf of the board of directors of
ALLIANCE GROWERS CORP.
President and CEO
For more information contact:
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
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.