InvestmentPitch Media Video Discusses Alliance Growers' Farm-In Agreement to Acquire 10 Acres of Medical Cannabis Grow Operations in East Africa - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - June 27, 2019) - Alliance Growers Corp., (CSE: ACG) (OTCQB: ALGWF) (FSE: 1LA) is in advanced discussions for a farm-in agreement with a private company that will cultivate and exclusively process, package and export all CBD, medical cannabis, extracted oils and related pharmaceutical products in an east African country.
The farm-in agreement, covering an initial 10 leased acres, will require an estimated investment of CDN$1,603,000 over the first full year of cultivation to produce an estimated annual net return of CDN$5,110,000 based on current forecasted costs and European Union sales prices.
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Dennis Petke, President and CEO, stated: "Alliance, as a diversified global medical cannabis company, has been reviewing and performing due diligence on multiple international medical cannabis opportunities over the last two years. This is the first opportunity that met all the criteria: low cost jurisdiction, partners on the ground, an expert in the application and approval for German certification of medical cannabis and a ready market in Germany. The opportunity to manage the operation with a local group who have the required expertise and experience to develop a cannabis operation in one of the lowest-cost environments, coupled with an ideal climate makes this opportunity ideal for Alliance Growers. We thank our many loyal shareholders for their support and patience as we execute on our business plan in a very volatile cannabis market."
The private company has a specific target of being the lowest cost, highest volume, quality certified raw material producer from Africa to the European Union medical marijuana market. Management states that the locations are ideally situated close to the equator with the requisite sunshine and rainfall, tested and suitable soils, along with a readily available supply of water. Most importantly, it has an off-take agreement with its German partners for the planned acreage and the resultant supply.
Further information will be supplied upon signing of the definitive agreement, which the company anticipates will be signed within 4 weeks upon completion of due diligence and approval by regulatory authorities.
Alliance Growers continues to work with Pharmagreen Biotech (www.pharmagreen.ca) 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 both the Cannabis and general agriculture markets. The facility is being developed on a 26-acre parcel of land in Deroche, British Columbia, approximately 110 kilometres east of Vancouver.
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Barry Morgan, CFO
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