Alliance Growers Receives Buy Recommendation from Fundamental Research - Video Available on InvestmentPitch.com

Vancouver, British Columbia--(Newsfile Corp. - October 12, 2017) - Today's buy recommendation comes from Fundamental Research Corp. Analyst Sid Rajeev gives Alliance Growers (CSE: ACG) a buy rating and a fair value estimate of $0.30 per share, a premium of 200% to the $0.10 closing price on September 27th, the day the report was issued. Alliance Growers Corp., along with it partner Botanical Research in Motion (B.R.I.M.), is planning to build a 40,000 square foot botany facility in British Columbia, Canada.

InvestmentPitch Media has produced a "video" which discusses this company. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Alliance Growers" in the search box.

Cannot view this video? Visit:
http://www.investmentpitch.com/video/0_sacs83q2/Fundamental-Research-has-Initiated-Coverage-on-Alliance-Growers

B.R.I.M's proprietary "Chibafreen Invitro Plant Production System" has the potential to mass-produce 3.5 million genetically superior cannabis plantlets a year, initially utilizing only 20,000 square feet. The company also expects that the botany centre will facilitate Testing Lab services, allowing Alliance to provide DNA tests for other growers in the cannabis space. Management have indicated that Alliance will initially have a 30% revenue earn-in to the botany centre at a cost of $3 million.

Analyst Sid Rajeev stated: "The botany centre will be constructed and ready to produce by the end of Q2 2018. However, as we conservatively estimate that the company's ACMPR license will not be available until the following year, cannabis production will not commence until 2019. In the second half of 2018, we forecast Alliance will produce other plantlets with lower margins. We believe that production will double to 7 million plantlets per year once the facility is expanded. As Alliance expects there to be demand for 76 million plantlets per year, based on ACMPR licensed producers entering the market, we believe that Alliance's market share (less than 10%) assumption is reasonable. Regarding CBD oils, management estimates an initial production capacity of 2,871liters per year. In our models, we assume production to begin at 359 liters in 2019, growing to 4,307 liters by 2024. We assume that future expansion of the production facility and joint ventures with other companies will allow CBD production capacity to increase."

In addition to the cannabis botany centre project, Alliance also seeks to grow via strategic investments in licensed Canadian cannabis producers and is currently considering the following initiatives:

• A planned equity investment into Canna Companion Products Inc., a wholly owned subsidiary of WFS PharmaGreen Inc., that produces and sells hemp-based pet supplements. As part of the arrangement, Alliance would invest $300,000 into Canna, and receive exclusive long-term CBD oil supply contracts when Canna expand into the Canadian market.

• Alliance has closed the first tranche of its equity investment into New Maple Holdings Ltd., the parent company of Canwe, an Ontario-based cannabis grower applying for an ACMPR license.

• Alliance maintains a 50% stake in BC Maramed Production, an ACMPR license applicant, that owns a leasehold interest and equipment to outfit a 11,000 square-foot growing facility in Kelowna, British Columbia.

• Alliance has entered discussion with an undisclosed private cannabis company in Ontario to acquire a non-dilutive 10% ownership stake.

• Furthermore, Alliance is considering a joint venture with an Israeli medical marijuana company to develop pharmaceutical grade CBD oil, which could significantly impact Alliance's future CBD oil business. Growth in this side of the business could imply significant future profits, as the cannabis-infused products segment of the cannabis industry exhibits impressive potential for profitability.

Alliance Growers' management team and board of directors have significant legal and cannabis industry expertise, as demonstrated by their track records. Management owns 7.5% of the outstanding shares.

The shares are trading at $0.12, well below Fundamental's fair value price of $0.30, and with 41.7 million shares outstanding, the company is capitalized at $5.0 million.

For more information please visit the company's website www.alliancegrowers.com, contact Dennis Petke, President and CEO, at 778-331-4266, or email DennisPetke@alliancegrowers.com.

About InvestmentPitch Media

InvestmentPitch Media is arguably the largest producer and distributer of video news content, primarily for small and mid-cap companies. The company specializes in producing short videos based on significant news releases, research reports and other content of interest to investors.

CONTACT:
InvestmentPitch Media
Barry Morgan, CFO
bmorgan@investmentpitch.com