Vancouver, British Columbia -- January 25, 2018 -- InvestorsHub
NewsWire -- Alliance Growers Corp. (CSE: ACG) (FWB:
1LA) (WKN:
A2DFYX) ("Alliance Growers" or the
"Company") is pleased to report that, further to
the January 2, 2018 announcement, the Company has finalized the
terms and conditions of the exclusive agreement to acquire a late
stage licensed producer applicant, Biocannatech, to become a
licensed producer under Health Canada's access to cannabis for
medical purposes regulations ("ACMPR") in Quebec. Alliance Growers
will supply financing and resources to build out the medical
marijuana facility in preparation for the inspection required to
obtain a growing license. Once Health Canada is satisfied with a
successful crop, Alliance Growers will be granted its distribution
license.
Terms of the deal call for Alliance Growers to pay the following
staged consideration, totalling $600,000 and 7,400,000 shares
valued at a deemed price of $1.00 per share, in return for
acquisition of 100% of Biocannatech:
|
a)
|
$100,000 cash plus 1,350,000 shares on signing;
|
|
b)
|
1,450,000 shares released immediately at application approved
for Ready to Build;
|
|
c)
|
$500,000 plus 1,200,000 shares paid immediately at permits
approved stage;
|
|
d)
|
1,700,000 shares released immediately at cultivation stage;
|
|
e)
|
1,700,000 shares released immediately at Health Canada ACMPR
approval.
|
The shares will be issued at the closing, and all but 1,350,000
shares will be held in escrow and released in stages following
completion of each of these milestones.
This is a key acquisition for Alliance Growers and its
shareholders, as it integrates various components of its 'Four
Pillars' Organization Plan, whereby the Company will become a
licensed producer in the province of Quebec, along with the
recently announced development of the Cannabis Botany Centre. This
move opens access for distribution of tissue culture plantlets, not
only to Biocannatech, but potentially to all licensed producers in
Quebec.
Quebec represents approximately 20% of Canada's population, and
the Province is anxious to develop a base of skilled licensed
producers to provide a self-sustaining supply for Quebec based
demand of both recreational and medical cannabis.
The initial Biocannatech facility is configured at 10,000 sq.
ft. and is attached to a 120,000-sq. ft. warehouse to provide for
phased expansion. Biocannatech will have the capacity to produce up
to 1,000 kg per year initially, and be able increase that output in
subsequent phases of expansion.
Commenting on finalizing the acquisition of a Quebec late stage
licensed producer applicant, Dennis Petke, Alliance Growers'
President and CEO, stated "Quebec's ACMPR licenses are currently
underrepresented relative to other provinces in Canada. Management
of Alliance Growers believes it is advantageous to capitalize on
the mandate to increase the number of ACMPR licensed companies in
Quebec. We are pleased to have now entered the grow space in Quebec
as we negotiate additional license applicants in this province. In
addition to growing, we look forward to becoming a preferred tissue
cultured plantlet supplier to the Quebec ACMPR community. Today's
announcement supports Alliance Growers mandate to build a
diversified global cannabis company that will be focused on where
the market is going, not where the market is today. "
'Today's bellwether announcement is an important part of
Alliance Growers significant growth plans for 2018, as we take the
Company to where the industry is going. Alliance Growers is
concentrating on two primary streams in the cannabis space which
are the most sustainable and that are here to stay; the grow stream
and the medical CBD Oil stream. The Company wishes to thank
investors for their support and patience as it progresses during
this exciting time for the cannabis industry".
About Alliance Growers
Alliance Growers Corp is a diversified cannabis company driven
by the Company's 'Four Pillars' Organization Plan — Cannabis Botany
Centre, Strategic ACMPR Investments, CBD Oil Supply and
Distribution, and Research and Development.
Alliance Growers has finalized its a new business partnership
with WFS Pharmagreen Inc., 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 Cannabis Botany
Centre 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.
Alliance Growers has entered into an exclusive agreement to
acquire a late stage licensed producer applicant, Biocannatech, to
become a licensed producer under Health Canada's access to cannabis
for medical purposes regulations ("ACMPR") in Quebec. Alliance
Growers will supply financing and resources to build out the
medical marijuana facility in preparation for the inspection
required to obtain a growing license. Once Health Canada is
satisfied with a successful crop, Alliance Growers will be granted
its distribution license.
This acquisition allows the Company an opportunity to become a
licensed producer in the Province of Quebec and gain an in-road to
provide tissue culture plantlets to all licensed producers in
Quebec.
Further, Alliance Growers has been negotiating to obtain other
exclusive Canadian distribution agreements for certain proprietary
products for support of the Cannabis growing industry in addition
to possible partnerships with Licensed Producer Applicants at
various stages in the Health Canada License process.
For further information, please visit the Company's website at
www.alliancegrowers.com or the Company's profile
at www.sedar.com.
If you would like to be added to Alliance Growers' news
distribution list, please send your email address
to newsletter@alliancegrowers.com
On behalf of the board of directors of
ALLIANCE GROWERS CORP.
"Dennis Petke"
Dennis Petke
President and CEO
For more information contact:
Dennis Petke
Tel: 778-331-4266
DennisPetke@alliancegrowers.com
Rob Grace
Communications Consultant
Tel: 778-998-5431
RobDGrace@gmail.com
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 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.