Alliance Growers (CSE: ACG) (FSE: 1LA) Executes Final Agreement to Acquire BiocannaTech, Quebec ACMPR Applicant
Vancouver, British Columbia - April 19, 2018 (Newsfile Corp.) (Investorideas.com Newswire) Alliance Growers Corp. (CSE: ACG) (FSE: 1LA) (WKN: A2DFYX) ("Alliance Growers" or the "Company") is pleased to report that it has executed the exclusive agreement to acquire the licensed producer applicant, BiocannaTech Inc. ("BiocannaTech"), to become a licensed producer under Health Canada's access to cannabis for medical purposes regulations ("ACMPR") in Quebec. Closing will be on or before April 25, 2018, five business days after the fully executed agreement. 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.
Quebec is considered the optimal locale for an ACMPR for many reasons. The province is host to 20% of Canada's population and has only had two ACMPR licenses approved to date with only one currently producing. Quebec is currently vastly under represented relative to many other provinces in Canada. The Quebec government has always maintained an aggressive approach to attaining 25% of whatever Canada's intentions are with business. Specifically regarding ACMPR licenses, Quebec has publicly stated they want Health Canada to process all 16 of the license applications in Quebec and have them approved expeditiously. When it comes time for Quebec licensees to purchase their supply, they will have a high priority on purchasing from Quebec growers. In Canada there are many politicians who act on the premise that Quebec deserves continual special policy treatment and defenders of the foregoing justify the exceptions with an observation that French language and culture in Quebec makes that province unique; that merits special treatment.
Alliance Growers will immediately acquire the Quebec late stage licensed producer applicant, with payments issued in stages. The terms of the BiocannaTech acquisition are as follows:
A down payment of $238,637, which has been paid.
a) The issuance of $50,000 in shares to Canna Technology Inc. and 1,200,000 shares to 1134778 BC Ltd (5/6) and Erick Factor (1/6) ("the Recipients") will take place within five days following execution of the purchase agreement and filing with the CSE;
b) $250,000 in shares to Canna Technology and 1,200,000 shares to the Recipients to be released immediately upon receipt of Health Canada approval for Ready to Build stage on or before December 31, 2019;
c) $500,000 paid to Canna Technology and 1,200,000 shares to the Recipients upon receipt of municipal building permits to start construction on or before December 31, 2019;
d) $500,000 in shares to Canna Technology and 1,200,000 shares to the Recipients upon receipt of Health Canada approval of Cultivation stage on or before December 31, 2019;
e) $500,000 in shares to Canna Technology and 1,200,000 shares to the Recipients upon receipt of Health Canada LP License on or before December 31, 2019.
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 to increase that output in subsequent phases of expansion. The building is in the Town of Mount Royal ("T.M.R.") in Montreal. This site is zoned for Medical Cannabis Production and BiocannaTech has the confirmation letter from the city of T.M.R. It is important to note that the lease provides the option to buy the facility and build equity for Alliance Growers and its shareholders.
Commenting on execution of the final agreement to acquire BiocannaTech, Dennis Petke, Alliance Growers' President and CEO, stated "We are very pleased to finalize this important and exceptional opportunity to acquire BiocannaTech for Alliance Growers and the Company's shareholders. We are fortunate to have financing support from the partnerships we have developed over the past 12 months. In December of 2017 and earlier this year, Alliance Growers finalized funding of over $1M from a private placement and the exercise of warrants and options. Upon conclusion of a small financing in April, we expect to complete a larger financing in May for up to $10 Million. Alliance Growers will then be moving full steam ahead on financing the "initial build stage" of BiocannaTech to create a premier cannabis supplier in Quebec. Management of Alliance Growers believes it is advantageous to capitalize on the governmental goal to increase the number of ACMPR licensed companies in Quebec. We are pleased to have now entered the grow space in Quebec whilst we negotiate additional license applicants in the province. These are exciting times for the cannabis industry and especially for Alliance Growers as we execute on our additional plans including further acquisitions of interests in ACMPR applicants, development of the Canna-App and finalization of the Company's Pharmaceutical Grade CDB Oil partnership with an Israeli Medical Cannabis Company. We ask all stakeholders to watch for news on further developments of the Cannabis Botany Centre as well. We also look forward to becoming a preferred tissue cultured plantlet supplier through the partnership we are developing with Pharmagreen on the Cannabis Botany Centre, to not only the Quebec ACMPR community but right across Canada."
About Alliance Growers
Alliance Growers 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 is working with WFS Pharmagreen Inc. advancing a new business partnership, 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 signed a fully executed agreement to acquire a licensed producer applicant, BiocannaTech, to become a licensed producer under Health Canada's access to cannabis for medical purposes regulations ("ACMPR") in Quebec. Closing is on or before five business days after the fully executed agreement. 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.
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On behalf of the board of directors of
ALLIANCE GROWERS CORP.
President and CEO
For more information contact:
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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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