ALLIANCE GROWERS TO ACQUIRE 10 ACRES OF MEDICAL CANNABIS GROW OPERATIONS IN EAST AFRICA
June 26, 2019 – Vancouver, BC – Alliance Growers Corp. (CSE: ACG; FWB:1LA; OTCQB: ALGWF) (“Alliance Growers” or “the Company) is pleased to report that management is in advanced discussions for 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.
The farm-in agreement for an initial 10 leased acres will require an investment of an estimated $1,602,960 Cdn payable over the first full year of cultivation to produce an estimated annual net return of $5,109,535 Cdn based on current forecasted costs and EU sales prices. A definitive agreement is anticipated to be signed within 4 weeks after all due diligence work is completed and approved by regulatory authorities.
Privco will be able to move forward on exploration, growth, processing, packaging and exporting of CBD, medical cannabis, extracted oils and related pharmaceutical products from the 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 marijuana market. The private company has an off-take agreement with their German partners for the planned acreage they can grow and the resultant supply. 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.
Commenting on acquisition of the initial 10 acres of a medical cannabis grow operation in east Africa, Dennis Petke, President and CEO of Alliance Growers stated, “Alliance, as a diversified global medical cannabis company has been reviewing and performing due diligence on multiple international medical cannabis opportunities over the last two years. This is the first opportunity that met all the criteria; Low cost jurisdiction, partners on the ground, an expert in the application and approval for German certification of medical cannabis and a ready market in Germany. The opportunity to mange the operation with a local group who have the required expertise and experience to develop a cannabis operation in one of the lowest-cost environments, coupled with an ideal climate makes this opportunity ideal for Alliance Growers. We thank our many loyal shareholders for their support and patience as we execute on our business plan in a very volatile cannabis market.
Financing with the transaction
Financing for this transaction will be conducted in an amount sufficient to enable it to fund the initial 10 acres. The amount being be raised and the terms of the financing will be established and announced at a later date. Interest for the financing has shown strong progress with this transaction.
Subsequent News Release
The Company will disseminate a subsequent news release upon closing of the transaction that will address provide further disclosure including: the name of the private company, the African jurisdictions and where the private company is licensed; further information relating to the private company; biographies on the management of the private company and directors of the company; and the details of the proposed financing to be completed for the transaction.
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.
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