Alliance Growers Corp (CSE:ACG) (“Alliance” or “the Company”) is pleased to report that the Company has finalized the facility design for its Quebec access to cannabis for medical purposes regulations (“ACMPR”) application in Quebec.
The final design makes efficient use of the available space for all aspects of the initial grow facility, while at the same time keeping costs in line and not sacrificing on quality. Permit applications are under-way and all aspects of the application process will now be moving ahead in an expeditious manner.
Alliance will provide financing and other resources to build out the wholly owned subsidiary, BiocannaTech’s medical marijuana facility in the town of Mount Royal, Quebec, in preparation for the inspection from Health Canada. Once Health Canada is satisfied with a successful crop, Alliance Growers will be granted its distribution license.
Becoming a licensed producer in the Province of Quebec allows Alliance to gain an in-road to provide tissue culture plantlets to all licensed producers in Quebec. Having an ACMPR license directly and owning strategic interests in ACMPR licensed producers, is an important part od the Alliance business model.
The Company also reports a partial closing of a non-brokered private placement announced on April 18, 2018. To avoid excess dilution for shareholders, management has limited this financing to around 2,500,000 units at a price of $0.30 per unit. To date, including the 650,000 units closed today, the company has raised $344,000 with the issuance of 1,146,667 units.
The proceeds will be used primarily to meet short term funding commitments for certain investment milestones in connection with the acquisition of up to 30% of the Cannabis Botany Centre and for moving the Quebec ACMPR application to the next stage. Alliance is preparing for a $5 million (up to $10 million) financing slated for end of May or mid June, 2018. The Company has significant commitments for the next round and will continue to add to that in the coming weeks.
Commenting on the Quebec ACMPR and financing, Dennis Petke, Alliance Growers’ President and CEO stated, “It is now full speed ahead at both our Western Canadian and Eastern Canadian operations. By wrapping up the designs for BiocannaTech facility in Quebec, we can quickly move on to the next steps in our drive toward an ACMPR license in Quebec.”
“On the financing front, despite recent set backs in the overall cannabis market, ACG’s market remains strong with many supporting shareholders. As Alliance continues to communicate the profit potential and sustainability of its business model, more and more investors are getting a better understanding of how Alliance is different and realize its here for the long term. The investors who continue to exercise warrants and participate in our private placements see the same potential that management sees. We expect to close off the $0.30 round with an additional 1.5 million units next week as we already have commitments for over 800,000. This small raise allows Alliance to prepare for the next leap forward in obtaining funding and executing on our projects. We thank all of our shareholders and other stakeholders for their continued support.”
Details regarding the current non-brokered private placement are as follows. Each $0.30 unit includes one common share and one common share purchase warrant which entitles the holder to acquire one additional common share in the capital of the Company at a price of $0.40 per share, for a period of three years from the date the Units are issued. The warrants are subject to an acceleration clause after the resale restrictions on the shares have expired. The expiry time of the warrants can be accelerated if the Company’s shares trade at or above a weighted average trading price of $0.60 per share for 10 consecutive trading days. All securities issued pursuant to the placement will be subject to a hold period of four months and one day from the date of closing.
About Alliance Growers Corp.
Alliance is a diversified 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 is working with WFS Pharmagreen Inc. advancing a new business partnership, to jointly develop and operate a 58,000-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.
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CEO, President and Director
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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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