ALLIANCE GROWERS UPDATE ON CANNABIS BIOTECH COMPLEX AND US CANNABIS ASSET ACQUISITIONS
May 2, 2019 – Vancouver, BC – Alliance Growers Corp. (CSE: ACG; FWB:1LA; OTCQB: ALGWF) (“Alliance Growers” or “the Company) is pleased to announce an update on our progress with the The Biotech Complex and our acquisitions in California.
PHARMAGREEN BIOTECH INC. (PHBI)
Pharmagreen Biotech Inc. (“Pharmagreen”), a cannabis tissue culture starter plantlets production company, remains on course with their immediate focus being to funding its 70% for the construction of a 63,000 square foot Cannabis Biotech Complex, in B.C., Canada. Pharmagreens plans to produce 1 Million sellable starter plantlets per month to cannabis licensed producers, and CBD hemp farmers with gross annual revenues are projected at $120 Million with a gross profit margin of $80 to 90 Million. A further update on the project development will be next as we are confirming the progress today with as much detail as possible.
Pharmagreen is migrating from the PINKS to OTCQB as soon as S1 is effective and becoming an OTC QB listed reporting issuer, with the intention to be a NASDAQ listed company as soon as the company qualifies. Public listing information for Pharmagreen Biotech Inc., includes the recent filing of their S1 registration statement, filed on March 20, 2019 with the 20 Million shares offering.
Commenting on the progress of Pharmagreen and the Biotech Complex, Dennis Petke, President and CEO of Alliance Growers stated, “We are very pleased with the progress and expect to report a detailed update on the project status on the property in the coming days. The Cannabis Biotech Complex, which Alliance intends to acquire a 30% interest, is one of the few unique investments in Canada for Canadian investors. We see the acquisition of US based cannabis assets as a way to round out our “plantlet to sale” model and to establish an entry to promote tissue culture plantlets in California cannabis market. “
US CANNABIS ASSET ACQUISITIONS
On April 23 2019 – Alliance announced discussions to acquire certain cannabis assets including licenses to grow, manufacture and sell in the State of California, with an initial focus on “craft” cultivators. The acquisitions include the benefit of simultaneous financing. Negotiations continue as we identify additional targets. We will announce further details when it is appropriate to do so.
$13M SHORT FORM PROSPECTUS
As previously announced on April 19, 2019, Alliance growers announced that it has filed a preliminary short form base shelf prospectus (“SFP”) in British Columbia, Alberta and Ontario, for the distribution of an aggregate of up to $13,000,000 of units (“Units”) of the Company. The SFP is being reviewed by the BCSC as the company responds to their comments, Alliance would like to emphasize a “base shelf” SFP means that Alliance does not have to raise the entire $13,000,000 at current market prices, once approved, it is open for two years, however, we expect to raise the funds in the next 12 months in tranches at progressively higher prices.
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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