Alliance Growers In Advanced Discussions To Joint Venture On 50 Hectares To Produce Pharmaceutical Grade Cbd Oil

December 9, 2016 – Vancouver, B.C. – Alliance Growers Corp. (CSE:ACG) (“Alliance Growers” or the “Company”) is pleased  to announce that it has entered into discussions with an Israeli medical cannabis company to create a joint venture to d evelop pharmaceutical grade cannabidiol oil (CBD Oil).
Included in the discussions is the joint development of 50 hectares of land for the growth of high quality cannabis plants, as legally permitted in an offshore, low operating cost jurisdiction. It is anticipated that the majority of the plant production would be processed for the extraction of pharmaceutical grade CBD Oil. This would facilitate the importation of the CBD Oil into various states in the USA, into Canada when legalized, and into other countries as permitted.
The potential partner has extensive expertise cultivating world-class marijuana in technical greenhouses. They have a team of scientists, designers, and engineers committed to developing high quality medical cannabis using greenhouses in geographical locations that offer an abundance of natural light. The joint venture partner’s R&D, based in Israel, involves both scientific and academic research, as well as current ongoing registered medical clinical studies.
The Hemp Business Journal reports that the CBD market is growing at a rate of 30% per annum, and forecasts that sales of CBD Oils from marijuana-based sources are expected to reach $1,650,000,000, or 79% of the total CBD Market, in the USA alone, of $2,100,000,000 by 2020.
Commenting on these new developments, Dennis Petke, Alliance Growers President and CEO stated “This joint venture is part of our plan of strategic alliances and investments in Licensed Producers. Alliance Growers is focused on securing longterm plantlet supply contracts and offtake agreements for CBD Oil. The proposed arrangement with such an experienced group is yet another significant step in developing our business model to facilitate our ultimate goal of becoming a successful global cannabis company. Our plan is to become a leading supplier of high quality CBD Oil to multiple channels in the Cannabis industry for both medical and recreational use in Canada, the USA and internationally.”
As previously announced, Alliance Growers is undertaking a private placement of up to 10,000,000 units (the “Units”) at a price of $0.20 per Unit, for gross proceeds of up to $2,000,000. Each Unit is comprised of one common share and one share purchase warrant. Each share purchase warrant will entitle the holder to acquire one additional common share in thecapital of the Company at a price of $0.30 per share, for a period of two years from the date the Units are issued. A portion of the proceeds may be used for the pursuit of the joint venture with the Israeli medical cannabis company to commence the proposed joint venture arrangement.