Alliance Growers Continues to Close Multiple Tranches of the $2,000,000 Private Placement, Settles Debt and Grants Stock Options
Vancouver, British Columbia--(Newsfile Corp. - September 24, 2018) - Alliance Growers Corp. (CSE: ACG) (the "Company") is pleased to announce that it has closed a fourth tranche of 5,184,856 units (the "Units") on September 24, 2018 at $0.14 per Unit for proceeds of $725,880, getting the Company closer to completing the $2,000,000 private placement.
Each Unit of the private placement announced on August 27, 2018 consists of 1 common share and 1 transferable common share purchase warrant exercisable for three years at $0.20. To date, the Company has raised $1,350,706 with the issuance of 9,647,899 units. In connection with this raise, the Company will pay Agent and Finders Fees and issue 195,394 broker Units on the same terms as the Private Placement Units. All securities issued pursuant to the placement will be subject to a hold period of four months and one day from the date of closing. The proceeds from the $2,000,000 financing will be used primarily to advance the Company's two main projects: the continued development of the Cannabis Biotech Complex and the construction of the BiocannaTech facility in Montreal, a late stage ACMPR applicant.
Commenting on the financing, Dennis Petke, Alliance Growers President and CEO said, "Although the process has taken longer than expected, we are very pleased with the demand for this recent financing, as it is expected to be oversold. We have commitments for the remaining 5 million units in the coming 5 to 10 days, with an expectation of an over-allotment. The Company will continue to close additional private placements at progressively higher prices over the next several months to fund the business plan. We would like to thank our shareholders for their continued support as we work towards realizing our vision of taking Alliance Growers to where the market is going, not where it is today."
Alliance Growers Corp. (CSE: ACG) (the "Company") announces that the Board of Directors has approved the grant of 5,150,000 options to directors, officers and consultants of the Company, which options are exercisable into common shares of the Company at a price of $0.20 per share. Subject to the rules of the Canadian Securities Exchange and the Company's Stock Option Plan, the options have a term of five years and will expire on September 24, 2023. At the time of the grant, the prior days' closing price of Alliance common shares was $0.18.
The Company has also entered in settlement with certain of its creditors for previously incurred debts totaling $175,000, whereby the Company will issue an aggregate of 875,000 common shares of the Company at a deemed price of $0.20 per share. At the time of the settlement, the closing price of Alliance Growers common shares was $0.18. All securities issued pursuant to this settlement will be subject to a hold period of four months and one day from the date of closing.
About Alliance Growers Corp.
Alliance Growers is a Diversified Global Medical Cannabis Company driven by the Company's 'Four Pillars' Organization Plan — Cannabis Biotech Complex, Strategic ACMPR Investments, CBD Oil Supply and Distribution, and Research and Technology.
Alliance Growers is working with Pharmagreen Biotech Inc. advancing a new business partnership, to jointly develop and operate a 62,000-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 Biotech Complex's main facility is the Cannabis Biotech Centre which will grow Cannabis plantlets using proprietary tissue culture propagation, specifically utilizing the "Chibafreen Invitro Plant Production System", which allows for more tissue cultured plantlets to be produced in less space and less time.
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