ALLIANCE GROWERS AUDIT UPDATE, PLANS AND OPPORTUNITIES
June 16, 2020 – Vancouver, BC – Alliance Growers Corp. (CSE: ACG; FWB:1LA; OTCPK: ALGWF) (“Alliance Growers” or “the Company) provides an update on current activities and plans.
The COVID-19 pandemic continues to cause business disruptions across all industries, including the cannabis space. Funding for our sector was already a challenge prior to the pandemic getting into full swing. Despite the challenges, Alliance Growers has managed to obtain the necessary funds required to complete its audit and all related expenses to service providers and regulators. As part of the audit process, auditors must look beyond the year end to complete the audit and provide their opinion. To that end, we are now completing Q1 and Q2 and providing all information subsequent to our August 31, 2019 year end. Clearly, this is a very unusual circumstance and it is taking much longer than originally expected. We anticipate completion of audit and other regulatory financial reporting and filings within the next two to three weeks. We plan to begin announcing progress on our various projects during that time.
The first update relates to our outdoor grow opportunity in Sierra Leone “West Africa”. Alliance Growers continues to work with Green Ocean Organics and with our financing sources during this disruption to the normal course of business created by the COVID-19 pandemic. Due to this ongoing situation, the Company has no choice but to defer our initial planting of the medical cannabis in West Africa from this year to early spring of 2021, subject to operating conditions being safe at the time.
On February 7, 2020, the Company had entered into a Binding Letter of Intent, expanding its opportunity in West Africa from a 10 acre farm-in sub permit announced on June 26, 2019, to securing the rights to cultivate country wide, allowing Alliance to offer “10 acre farm out parcels” to other cannabis companies, as well as operating its own 10 acre farms.
By way of the Binding LOI with Green Ocean Organics Ltd and a 5-year Ministry agreement, the Company will control the Permit that allows Alliance Growers to cultivate, process, package and export all CBD, medical cannabis, extracted oils and related pharmaceutical products in West Africa.
In the past several weeks, the Company has been introduced to many attractive opportunities, the most appealing of which tie into our business model, are self-funded and have a United States reach. Among the opportunities that we expect to be announcing in the next several weeks include medical related opportunities in North America involving psychedelics, and globally, in the psilocybin and ibogaine sector. This sector utilizes controlled substance extracts and derivatives, grown organically for medical research, clinical trial, FDA and other regulatory approval for a micro dosing prescription-based supply chain.
Currently the company is in negotiation for a significant strategic partnership/investment with a private organization that includes innovative premium infused cannabis products and related product dispensing. Through an ambitious strategic plan, the Company would position itself to become an industry leader with premium cannabis products, infused with CBD and THC, thanks to this potential partnership that boasts significant wide-reaching distribution in the United States.
The business plan would see such products sold online directly to consumers, through State or Provincial distributors and retailers, and through wholesalers. In Canada, once a Production License is obtained, the Company would be able to produce product lines in its own licensed facility and distribute directly to Canadian Licensed producers and Provincially licensed wholesalers and retailers. In the USA, where permitted, strategic alliances and partnerships would be developed with distributors who have state licensed labs for extraction and licenses for distribution.
Commenting on the potential for securing these opportunities, 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 are concurrently in discussions with investors in from the USA, Canada and the UK who are interested in funding our revenue generating opportunities, ranging from construction of the Cannabis Biotech Complex by 2021, to the Agro-farm potential in West Africa, to product manufacturing and distribution opportunities in Canada, the USA and Europe. Securing opportunities that have concurrent financing will make it possible to complete partnerships and acquisitions to benefit all stakeholders.
The Company continues to work with its auditors to complete the 2019 annual Financial Statements, 1Q and 2Q Financial Statements and necessary related filings as soon as possible. Currently most people are working from home, and this does result in the process moving forward more slowly. Nevertheless, the Company is making the completion of this activity a high priority, as it will facilitate financing once the Company is reinstated for trading. We thank all stakeholders for their patience and understanding during this difficult unusual time.”
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.
Alliance Growers is working with Pharmagreen Biotech Inc. to jointly develop and operate a 63,000-square foot Cannabis Biotech Complex, to be the first of its kind in Western Canada to house a DNA Botany lab, CBD extraction facility and Tissue Culture Plantlet Production facility to service the Cannabis market and agriculture market in general.
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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.
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.