ALLIANCE GROWERS PLANTS NEW ROOTS
July 3, 2019 – Vancouver, BC – Alliance Growers Corp. (CSE: ACG; FWB:1LA; OTCQB: ALGWF) (“Alliance Growers” or “the Company) is pleased to provide a corporate update on the company’s projects and financing.
Cannabis Biotech Complex
Alliance Growers’ and WFS Pharmagreen Inc. continue to develop the first Cannabis Biotech Complex in Canada in Mission, BC. The Biotech Complex will derive the bulk of its revenue from the production of tissue culture plantlets as required by licensed producers and eventually all cultivators of various cannabis strains to maintain strain-consistency.
- Pharmagreen Biotech Inc. (OTC: PHBI), the parent company of WFS Pharmagreen is in final preparations for a USD$20 million equity financing that will be undertaken once the S1 registration statement is effective. This undertaking gives Pharmagreen the means to finance it’s 70% of the Cannabis Biotech Complex.
- A company affiliated to Pharmagreen has received its hemp License and is now in a position to initiate its pilot program to establish the ideal geographical areas in Canada to cultivate the unique “CBD Dana” strain. CBD Dana has been developed and optimized to provide the CBD hemp farming sector with a high yield CBD strain (from 14% up to 20%), compared to Industrial hemp strains, which contain around 1% CBD
East African Medical Cannabis Cultivation for the German Market
Alliance Growers is finalizing a farm-in agreement with a private company (“Privco”) that will cultivate and exclusively process, package and export all CBD, medical cannabis, extracted oils and related pharmaceutical products in an east African country.
Privco has a specific target of being the lowest cost, highest volume, quality certified raw material producer from Africa to the EU medical cannabis market. The locations are ideally situated close to the equator with the requisite sunshine and rainfall, tested and suitable soils, plus natural water readily available. Labor and taxes have been set in all the locations at the lowest levels seen globally, and logistics are secure and transparent. Interest in the financing for this transaction is strong and will be conducted in an amount sufficient to enable it to fund the initial 10 acres and the first year of cultivation.
$13 Million Preliminary Short Form Prospectus
Alliance Growers announced on April 16, 2019 that it has filed a preliminary short form base shelf prospectus in British Columbia, with the British Columbia Securities Commission to qualify the distribution of an aggregate of up to $13,000,000 of units of the Company. Execution of the definitive agreement in East Africa followed by the initiation of operations enables Alliance to finalize on the $13,000,000 financing, to be offered in amounts, and at progressively higher prices to be determined based on market conditions at the time of each offering.
Canwe Growers Inc. Strategic Investment
Alliance Growers made a strategic investment in the common shares of New Maple Holdings Ltd., the parent company of Canwe Growers Inc., with the intention of securing a long-term tissue culture plantlet supply contract and the offtake of flower at wholesale for CBD extraction. Canwe, an Ontario-based cannabis company has access to a 22-acre property 1.5 hours north-west of Toronto, where it is nearing completion of its facility where it will producing clean, premium quality cannabis. Over the last two years, Canwe has amassed the majority of the original MedReleaf grow team including the head grower. In 2016, MedReleaf Corp., was more profitable than all LP’s combined, thanks to the highly skilled grow team and the efficient grow system they developed. Having full access to this top tier experienced grow team is a significant asset to Alliance, to ensure success for all of our various grow operations globally.
Nevada, U.S. Hemp Operations
Alliance Growers is in discussions to partner on a portion of a 120-acre parcel of land in Nevada, USA to grow CBD-rich hemp. Under the proposed agreement, Alliance Growers will finance the initial cost of hemp seeds in exchange for a portion of the 120-acre parcel of land in Nevada. In consideration for the investment, the Nevada partner will provide all the necessary capital and consumable supplies and they will plant, grow and harvest the hemp. The harvest will be shared accordingly, and at the option of Alliance, the Nevada partner will arrange for the processing and sale of the biomass at no less favourable terms that those found in their current supply agreements. The Nevada partner has enjoyed previous success in cultivating Hemp in Nevada with CBD levels between 10% and 19%.
$4 Million NY US Family Office, Global Corporate Finance
On March 6, 2019, Alliance Growers executed a Share Purchase Agreement with a US Family Office, Global Corporate Finance (“GCF”). New York, NY, USA. GCF and Alliance will execute the initial tranche of 1 million shares within the next 2 weeks and will execute on larger tranches at progressively higher prices. The CAD $4 million equity facility offered by GCF, is structured such that it allows the Company, solely at its request, to draw down on the facility equity over a period of up to 30 months.
Commenting on the progress at Alliance Growers, Dennis Petke, President and CEO of Alliance Growers stated, “We are pleased that Pharmagreen is in the final stages of securing financing for its portion of the Cannabis Biotech Complex, this has been long awaited by Alliance and all stakeholders. As we are a global medical cannabis company, the addition of the East Africa and Nevada projects coupled with our multiple financing initiatives, demonstrates that we are executing on our business plan.
We thank our many loyal stakeholders for their support and patience as we execute on our business plan in a very volatile cannabis market.”
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. 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.
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