Alliance Growers Corp. (CSE:ACG) is providing this corporate update to remind its shareholders and potential new investors of the company’s business strategy and how Alliance Growers differentiates itself from other Canadian cannabis companies. Alliance Growers wants to assure its shareholders that the company is committed to finalizing its licensing agreement for the cannabis botany centre … Continued
Alliance Growers Corp. (CSE:ACG) is providing this corporate update to remind its shareholders and potential new investors of the company’s business strategy and how Alliance Growers differentiates itself from other Canadian cannabis companies. Alliance Growers wants to assure its shareholders that the company is committed to finalizing its licensing agreement for the cannabis botany centre and other strategic investments and partnerships.
Cannabis botany centre
Botanical Research In Motion International Inc. (BRIM) and Alliance Growers have agreed to extend the period of time required to finalize the definitive licence agreement. The delay was due to BRIM and Alliance Growers finalizing on terms and documentation to secure the full-time services of Dr. Afreen and her proprietary technology, the Chibafreen in vitro plant production system. These additional terms have added another set of agreements to be referenced in conjunction with the main licence agreement.
The development of the cannabis botany centre, together with the undernoted partnerships and investments, is designed to provide Alliance Growers with the following:
- Produce revenue from the sale of cannabis and other plantlets under contract;
- Generate revenue from the processing and resale of cannabidiol (CBD) oil in Canada, the United States and offshore;
- Providing cold-storage facilities utilizing the one-of-a-kind cryotissue cold-storage technology for tissue culture preservation and regeneration as needed on a long-term basis;
- Provide extraction services as retail services for cultivators and create custom profiles for extraction for botanicals oils for retail market.
First strategic investment in a private medical cannabis company
Through a serious of strategic partnerships and investments under negotiation with licensed producers at various stages in the licence process, Alliance Growers is focused on securing long-term plantlet sale contracts for the cannabis botany centre and off-take agreements at wholesale costs for flowers to be acquired by Alliance Growers for CBD oil extraction.
Alliance Growers has negotiated terms on a 10-per-cent non-dilutive interest in a private company in Ontario that has assembled a top-tier growing team with management that has the expertise to expedite the licensed producer application process.
Joint venture with Israeli medical cannabis company
Further to the company’s commitment to become a leading supplier of pharmaceutical-grade CBD oil on a global basis, Alliance Growers continues discussions setting out terms with an Israeli medical cannabis company.
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. This would facilitate the importation of the CBD oil into various states in the United States, into Canada when legalized and into other countries as permitted.
This joint venture and other similar partnerships are what will make Alliance Growers stand out from other Canadian cannabis companies that are directly affected by Health Canada rules and regulations. Alliance Growers plans to produce and sell more CBD oil from outside Canada.
The Hemp Business Journal reports that the CBD market in the United States is growing at a rate of 30 per cent per year and forecasts that sales of CBD oils from marijuana-based sources are expected to reach $1.65-billion, or 79 per cent of the total CBD market of $2.1-billion, by 2020.
Commenting on these new developments, Dennis Petke, Alliance Growers’ president and chief executive officer, stated: “We appreciate our many supporters’ and investors’ patience as we finalize these three of many joint ventures and partnerships to come. We realize that the anticipation is building even though these agreements take longer to complete than expected. We, as management and investors as well, want our supporters to know we are fully committed to completing our plans as expeditiously as possible, while at the same time maximizing the opportunity and mitigating risks. We believe we will all benefit from this careful, prudent approach in the long term.”
As previously announced, Alliance Growers is undertaking a private placement of up to 10 million units at a price of 20 cents per unit, for gross proceeds of up to $2-million. Each unit comprises one common share and one share purchase warrant. Each share purchase warrant will entitle the holder to acquire one additional common share in the capital of the company at a price of 30 cents per share, for a period of two years from the date the units are issued. A portion of the proceeds may be used for finalization of the company’s current projected arrangements.
About Alliance Growers
Alliance Growers is a diversified cannabis company driven by the company’s four-pillar organization plan: MMPR (marihuana for medical purposes regulations) cannabis production facilities, distribution network, consumer products, and research and development.
Click here to read more on Alliance Growers Corp.