Alliance Growers in Talks to Acquire U.S. Cannabis Assets
Vancouver, British Columbia--(Newsfile Corp. - April 23, 2019) - Alliance Growers Corp. (CSE: ACG) (FWB:1LA) (OTCQB: ALGWF) ("Alliance Growers" or "the Company) is pleased to announce that it has been in discussions to acquire certain cannabis assets including licenses to grow, manufacture and sell in the State of California, with an initial focus on "craft" cultivators and distribution of their product. The Company anticipates a short due diligence period and will receive the benefit of simultaneous financing when entering into this relationship.
Commenting on the prospects of acquiring cannabis assets in California, Dennis Petke, President and CEO of Alliance Growers stated: "Cannabis investors have made it very clear by the movement of their investment capital to the United States either directly or through Canadian public companies, that the opportunity for maximizing the value of their investment dollars lies in the flourishing US cannabis market. There are still, of course, many valuable investment opportunities in the Canadian cannabis space, such as the Cannabis Biotech Complex, which Alliance intends to acquire a 30% interest. We see the acquisition of US based cannabis assets as a way to round out our "plantlet to sale" model and to establish an entry to promote tissue culture plantlets in the highly lucrative and quickly expanding California cannabis market. This opportunity represents another avenue for Alliance Growers to deliver on the Company's mandate to build a diversified global cannabis company focused on where the market is going, not where it is today."
As previously announced on April 19, 2019, Alliance growers announced that it has filed a preliminary short form base shelf prospectus ("SFP") in British Columbia, Alberta and Ontario, for the distribution of an aggregate of up to $13,000,000 of units ("Units") of the Company. To provide clarity, the Company would like to emphasize that it is a "base shelf" SFP meaning Alliance Growers does not have to raise the entire $13,000,000 at current market prices. Once the Company receives final approval, it is open for two years, however, we expect to raise the funds in the next 12 months in tranches at progressively higher prices.
As reported in Cannabis Business Plan, on November 8, 2016 Californians voted overwhelmingly to make adult use legal in a state that represents the world's sixth-largest economy. In 2017, California's regulatory regime allowed only holding state-issued medical cannabis cards to legally purchase cannabis. But that hasn't stopped sales in the state from eclipsing the other states with recreational sales. In fact, sales in California represented about 34 percent of legal sales in the United States. In 2018, California retail stores sold $2.5 billion worth of cannabis products, compared to $1.5 billion in Colorado's robust cannabis marketplace, $1.0 billion in Washington, and $0.6 billion in Oregon. By 2022, the cannabis market in California is projected to jump to $7.7 billion- boosted significantly by California's recreational cannabis market that opened for business in 2018. The California cannabis industry's total economic impact could be nearly $15 billion in the next four years.
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. to jointly develop and operate a 63,000-square foot Cannabis Biotech Complex, to be the first of its kind in Western Canada to house a DNA Botany lab, CBD extraction facility and Tissue Culture Plantlet Production facility to service the Cannabis market and agriculture market in general.
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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.
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