Alliance Growers Corp. (CSE:ACG) is pleased to provide clarifications to the Company’s news release dated March 15, 2018 regarding several key advancements for the Cannabis Botany Centre and is pleased to report the addition of nursery plant production.
Alliance Growers and Pharmagreen reported the following key notable advancements:
– Design upgrades of the facility have been completed to include the increased handling of 10 Million plantlets per year from previous annual capacity of 3 Million
– Included in the design upgrades are state-of-the-art semi automation processes to ensure consistent and high-quality production of plantlets for an ever-growing demand as the number and size of cannabis production facilities keeps expanding. The CAPEX for the 58,000 sq. ft Cannabis Botany Center is continuing to be refined but will not exceed $15 Million Cdn.
– The Cannabis Botany Center and its services offered are high value-added products and services for both the domestic and international cannabis industry.
– Annual gross revenue from the tissue culture operations are expected to be $50 Million per year with 10 million plantlets produced and sold at $5 per plantlet. The all-in operating and production cost per tissue culture plantlet would be approximately $.50 each to $1.00 ($5 to $10 million annual total cost) and the projected gross profit on an annual basis operating at full capacity would be $40 to $45 Million Cdn.
In addition to the production of plantlets, Alliance Growers and Pharmagreen will also be producing nursery plants to provide cultivators larger plants that are vegetated and ready for flowering. This is advantageous to the cultivators and licensed producers because they can then in turn utilize more of their space for flower production. It also reduces the costs for the cultivators if they focus on flower only, as they would not need 18 hours of light cycle. It also increases their frequency and shortens the time for flower production for the licensed producers.
The nursery plants will be in a vegetative state (prior to being in the flower stage) and would be 2 to 4 feet in height. Initially, after the completion of the 58,000 square foot Cannabis Botany Center, 1 acre (45,0000 sq. ft) of green house space would be allocated for the nursery plants. The number of plants in a vegetative state in the one-acre green house would be up to 5,600 plants monthly for a total of 67,200 plants on an annual basis. The price per plant would range from $75 to $100 and the all-in operating and production cost per plant is projected to be $10 to $20. Annual gross profit would be more than $4 Million Cdn per year.
Commenting on the advancements and progress at the Cannabis Botany Centre, Alliance Growers President and CEO, Dennis Petke stated, “Our close business relationship with Pharmagreen continues to add highly profitable cash flow opportunities in the Cannabis space in both the medical and recreational areas. In addition to the 30 percent ownership in the Botany Centre, which has high profit margins in both tissue culture plantlets and in nursery produced plants, we will be partnering in the production of CBD oil from hemp production on a significant scale. These profitable ventures in addition to various levels of ownership in multiple ACMPR applicants will make Alliance a stable long-term investment for investors. It is well known that medical cannabis is here to stay, and this alone will provide Alliance sustainable cash flow for years to come as we provide products and services to licensed medical cannabis producers. The addition of providing products and services to the recreational space is a bonus with even higher margins. Alliance will be one of the few medical cannabis companies that will continue to grow in value and revenue year-after-year due to its diversified global business model. To fund our ventures, we are extremely fortunate to have financing commitments in place to ensure we can execute on each phase of each project when required. In a volatile market such as the cannabis space, those commitments are critical. We ask shareholders and future investors to watch for financing and project execution updates in the coming days and weeks”.
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 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.
President and CEO
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