ALLIANCE GROWERS COMPLETES STRATEGIC INVESTMENT IN PHARMAGREEN
Alliance Growers Corp. (CSE: ACG; FWB: 1LA; WKN: A2DFYX) (“Alliance Growers” or the “Company”) is pleased to announce the completion of the Company’s strategic $300,000 investment in Pharmagreen. The equity investment is a private placement in Pharmagreen for a total of $300,000 at a price of $0.25/ share.
Pharmagreen operations will be in British Columbia, Canada, with the construction of the cannabis botany centre as a wholly owned subsidiary of Pharmagreen. In the United States, Pharmagreen currently holds a 100-per-cent interest in Canna Companion Products Inc. Pharmagreen on behalf of BC Newco has commenced multiple applications for Health Canada licences with its consulting group Cannabis Compliance Inc. Alliance Growers as a strategic partner with Pharmagreen is investing $3-million for a 30-per-cent interest in the cannabis botany centre in Mission, B.C., having already made a deposit of $250,000.
The investment is important to Alliance Growers’ growth and success for two reasons:
Accelerates the development of the cannabis botany centre;
Provides a profitable investment that has near-term liquidity.
Commenting on the strategic investment in Pharmagreen, Dennis Petke, Alliance Growers’ president and chief executive officer, noted: “We are very fortunate to be able to strategically invest in Pharmagreen at such a discounted price to the anticipated opening public market price of $1/share. Finalizing the BC Newco investment of $3-million in the cannabis botany centre is the most significant milestone in the company’s business plan. Now that Alliance is capitalized, we will be working closely with Pharmagreen to accelerate the development of the cannabis botany centre. It represents the beginning of the execution of multiple initiatives that Alliance Growers has been developing over the last year. Alliance Growers has already acquired interests in two ACMPR applicants, notably Biocannatech, whereby Alliance recently acquired 100-percent ownership of this late-stage Quebec ACMPR applicant; and Canwe, a private company based in Ontario that has applied for its ACMPR licence and is currently in the review and security clearance stage. Alliance continues to negotiate further acquisitions in the grow space in Canada and Australia. The company will be executing on additional acquisitions of interests in ACMPR applicants, development of the Canna-App and finalization of its pharmaceutical grade CDB oil partnership with the Israeli Medical Cannabis Company. Alliance Growers intends to live long and prosper by building a global cannabis company for where the market is going.”
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.
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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 RobGrace@alliancegrowers.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.