Alliance Growers Secures $4 Million Equity Facility
Vancouver, British Columbia--(Newsfile Corp. - March 6, 2019) - Alliance Growers Corp. (CSE: ACG) (FSE: 1LA) (WKN: A2DFYX) (OTCQB: ALGWF) ("Alliance Growers" or "the Company") is pleased to report the execution of a Share Purchase Agreement with a US Family Office, Global Corporate Finance ("GCF"). New York, NY, USA. Total gross proceeds from the Offering for the Company are expected to be CAD $4 million, before deducting fees and expenses, over several months, being drawn down in multiple tranches at progressively higher prices.
The CAD $4 million equity facility offered by GCF, is structured such that it allows the Company, solely at its request, to draw down on the facility equity over a period of up to 30 months subject to certain pre-agreed floor pricing at progressively higher prices. This commitment from GCF will contribute toward our financial obligations for the acquisition of a 30% interest in the Cannabis Biotech Complex, advancing the Biocannatech Cannabis application and our other projects.
Commenting on the GCF financing, Dennis Petke, President and CEO of Alliance Growers stated, "We are very proud to have attracted and engaged the interest of the GCF Family Office out of New York with an offer to finance Alliance Growers. Having this equity facility available as we need it, allows management to focus on developing the Alliance Growers' business model. We believe that the success of this offering reflects the progress we have made in advancing the Company over the past 2 years. This offering is a significant catalyst for the growth of the Company, providing us with the means to ensure an optimal execution of our strategy to build shareholder value."
GCF's investment will be made in shares through targeted issues at-the-market share price at the sole discretion of the Company. The Company shall pay GCF a Commitment Fee equal to 2% of the Total Commitment in common shares of which 400,000 is due upon signing of this Commitment Letter.
"The investment in Alliance Growers is a logical step in GCF's strategy to invest in Cannabis companies with unique strategic investments in the cannabis space and the potential to develop significant value over the next two to five years," said Randy Rivera, Managing Director at GCF."
About Global Corporate Finance
Global Corporate Finance ("GCF") is a private family office, located in New York City. GCF focuses on micro and mid cap companies in emerging markets and provide a global footprint for proprietary partnering resources, expertise, and funding. GCF has made investments in listed companies in the US, Canada and Europe.
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 63,000-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.
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THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, the news release contains forward-looking statements and information relating to Company's corporate strategy. The forward-looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company's ability to carry out its business plan. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the Company's ability to identify and complete additional suitable acquisitions to further the Company's growth as well as risks associated with the medical marijuana industry in general, such as operational risks in development and production delays or changes in plans with respect to development projects or capital expenditures; the uncertainty of the capital markets; the uncertainty of receiving the required licenses, production, costs and expenses; health, safety and environmental risks; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of the potential market; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and regulated regulations. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
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