ACG CEO, Dennis Petke, Reflects on the current state of Alliance Growers, 2022 in the cannabis industry and the Successful Road Ahead for ACG December 30, 2022 – Vancouver, BC – Alliance Growers Corp. (CSE: ACG; FWB:1LA; OTCPK: ALGWF) (“Alliance Growers”, “ACG” or “the Company) ") is pleased to provide their valued shareholders with a 2022 year-end review from the Company’s CEO, Dennis Petke, to highlight ACG’s current state of affairs, review the 2022 cannabis industry and provide his opinion on the Company’s positioning heading into 2023. Statement from ACG CEO, Dennis Petke Dear Shareholders,
Thanking you all for your continued support, loyalty, and trust in Alliance Growers. I wanted to close out the year with a statement on the state of affairs at Alliance Growers and a brief review of the current state of the cannabis industry. Alliance Growers is a Diversified Global Medical Cannabis Company driven by the Company’s ‘Four Pillars’ Organization Plan – Products and Services to Cannabis and Hemp Cultivators (Cannabis Biotech Complex), Strategic Alliances with Cannabis and Hemp Cultivators, CBD Infused Products and Research and Technology. Alliance Growers is a Diversified Global Medical Cannabis Company driven by the Company’s ‘Four Pillars’ Organization Plan – Products and Services to Cannabis and Hemp Cultivators (Cannabis Biotech Complex), Strategic Alliances with Cannabis and Hemp Cultivators, CBD Infused Products and Research and Technology. Products and Services to Cannabis and Hemp Cultivators (Cannabis Biotech Complex) Alliance Growers has acquired a 10% equity interest in Pharmagreen’s subsidiary 1155097, with an option to increase to a 30% equity interest. Depending upon the expected increase in Cannabis demand in 2023, we expect to start construction by year end pending financing, of course. Strategic Alliances with Cannabis and Hemp Cultivators Strategic alliances with hemp and cannabis cultivators (including investments in licensed producers and applicants), gives the Company access to valuable resources and adds value to the balance sheet will provide revenue. Our Investments in Pharmagreen and New Maple Holdings, net of liabilities gives us over a $2 million net book value. CBD and THC Infused Products Alliance Growers continues to review opportunities that fit with our Four Pillars corporate strategy designed to focus on projects that have realistic potential for success. We are finalizing on two partnerships that are “self-financed”. We are finalizing terms with Canadian distillery to supply spirits to be infused with CBD. The infused products will be developed initially for export to the USA and eventually in Canada. The Company has begun negotiations to acquire a private company that is an innovator of premium infused cannabis products. Through an ambitious strategic plan, the Company would position itself to become an industry leader with premium cannabis products, infused with the natural pain relief from CBD/THC. This will be structured as a “self-financed” wholly owned subsidiary. Research and Technology The Company maintains a strategic relationship with Pharmagreen and B.R.I.M., a company that has expertise in all aspects of botany, specializing in cannabis and hemp. Alliance Growers continues to seek strategic relationships with R&D cannabis and hemp specialists. Reinstatement for Trading Alliance Growers continues to work with our partners, service providers and regulators to get The Company reinstated as soon as possible. There have been several delays related to a lack of financing. Cannabis Market Update: 2022 in Review The first few months of the year brought many catalysts for the market thanks to significant M&A and an increase in interest regarding US legalization. US-based cannabis operators are reaching significant growth levels due to the expansion of individual state markets and better availability across the nation. This financial success continues to be led by state decisions to open the doors to cannabis programs, as the industry has yet to see support at the federal level. Unfortunately, the difficult political process has not enabled any significant Federal legislation to date. New Jersey has opened the recreational market. This opening has been one of the most anticipated events in the US cannabis industry. Analysts anticipate that there will be a domino effect on neighboring states in the northeast now that the Garden State has given the green light to adult-use cannabis. Cannabis investors saw volatility extend in Q1 along with doubts about the present health of the stock market. However, experts are bullish about the sector's long-term overall health. While many questions remain about market conditions in the US and Canada, signs of the emergent growth within both countries are present and understood. Investments in the cannabis market have taken a beating across the board in 2022, and in Q2 losses piled up for all. With companies of all valuations and operating models feeling the pain, the cannabis story finds itself at a difficult moment, but there are a few points of long-term optimism ahead. Canadian and US cannabis operators are both struggling financially, but the reasons they're having problems are very different. Cannabis business in the US continues to find itself in a gridlock. While new states are opening up or adjusting their size with increased product availability and interest, the federal framework is severely lagging behind. There is an expectation to see a rush of capital investment from institutional players once a policy such as the SAFE Banking Act, or any federal reform opens the doors to US-based investment with no consequence. The entire global economy is facing pressures at every level, and cannabis is no different. This has led to many price downturns and valuation declines despite steady operations in the US. Retail investors are largely leading the charge in cannabis, whereas for a healthier market more institutions would hold a stronger position in the sector. Ongoing unprofitable quarters, high cash burn rates and low valuations have made it increasingly difficult for operators to raise capital. M&As have played a significant role in the emergence of the cannabis space. While key deals have been completed in 2022, investors have seen a slowdown compared to previous years when it comes to big brand deals between major publicly traded firms. In the short term, M&A will continue to face a dry spell since investors have lost interest in cannabis shares. Many companies in the cannabis industry have a high cash burn and limited capital making M&A difficult. Cannabis investments have a bright future by way of expected market growth and the ongoing opening process for new jurisdictions in the US and abroad. However, right now both investors and companies appear to be reaching their limit when it comes to tolerating difficult market conditions. Companies will continue to pursue their business models and adjust to the new realities of the market, but the lack of progress in the US is draining momentum for the market quarter by quarter. As far as 2022 goes, the year has brought struggles in capital availability, severe financial losses for companies and an ongoing sense of desperation from the lack of policy progression in key markets. The cannabis stock market hasn’t been kind to investors throughout 2022. Although many experts remain positive about the long-term outlook for the space, cannabis hasn't been immune to poor economic conditions. While cannabis policy remains in question at the country level in the US, the entire market received a lifeline of supply thanks to US President Joe Biden’s decision to pardon people charged federally with cannabis possession. The move was a victory for the entire cannabis cause, but it also brought forward a glimmer of hope about the key changes industry participants are desperately asking for. Financial analysts across the board continue to emphasize that the Canadian market is struggling within the larger cannabis space. While many of its ailments fall squarely on the shoulders of the publicly traded producers that spearheaded the launch of adult-use legalization in Canada, the industry is asking for help from the government to change its rules including that the Canadian market is struggling with current packaging and marketing regulations. But primarily the tax breakdown on cannabis products may be too harsh. The cannabis industry finds itself in a precarious position. Although regulatory changes in the US are anticipated, it's unclear when they may come, and right now the market is having to contend with tough financials and diminished results across the board. For investors, it’s been difficult to even catch a glimmer of the positive long-term outlook. But its clear experts are pointing to the future to continue preaching patience in the market. Although there's been major upheaval in the world of cannabis investments, with the current landscape at times showing stories of difficulty and losses, experts remain bullish on the long-term progress of the global market. Cannabis remains illegal at the federal level in the US, but state market openings have allowed US-based operators to thrive. Typically, these firms set up vertically integrated businesses with a focus on branded products, retail networks and licenses. While these companies have adapted to regulatory challenges, they have much to gain from country-level reform in the US and are eager to see more welcoming federal laws that will allow their businesses to develop further. Success in 2023 I intend to make 2023 a year of success for Alliance Growers beginning with the return to trading on the CSE. The last two years have been an unusual time for many companies. My goal is for the Company to return maximum value to you, our loyal shareholders. Thank you again for your support. I wish you a safe, healthy, and prosperous new year. Happy holidays!
Sincerely, Dennis Petke President & CEO Alliance Growers Corp. About Alliance Growers Corp. Alliance Growers is a Diversified Global Medical Cannabis Company driven by the Company’s ‘Four Pillars’ Organization Plan – 1-Products and Services for Cannabis and Hemp Cultivators through its strategic relationship with PharmaGreen Biotech Inc. (PHBI) including the supply of starter plantlets through a proprietary tissue culture process for hemp and cannabis a the supply of feminized, high percentage CBD hemp seeds; 2-Strategic Alliances with Cannabis and Hemp Cultivators, giving the Company access to indoor and outdoor grow facilities and providing hemp and cannabis products (Alliance branded pre-rolls) along with the potential for export of cannabis and hemp product; 3-CBD/THC Infused Products via “self-financed” partnerships including infused spirits and infused health related products; and 4-Research and Technology through strategic relationships with PharamaGreen, its sister company, B.R.I.M., a company with expertise in all aspects of cannabis and hemp and other entities. The Company is in the process of updating its website and company profile with various entities. For further information, please visit the Company’s website at www.alliancegrowers.com or the Company’s profile at www.sedar.com. If you would like to be added to Alliance Growers’ news and newsletter distribution list, please subscribe on the Alliance Website at www.alliancegrowers.com. For more information contact: Rob Grace Communications Consultant Tel: 778-998-5431 RobDGrace@gmail.com Dennis Petke CEO, President and Director Tel: 778-331-4266 DennisPetke@alliancegrowers.com FOLLOW US: FORWARD LOOKING INFORMATION This newsletter 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. |