September 16, 2021 – Vancouver, BC – Alliance Growers Corp. (CSE: ACG; FWB:1LA; OTCPK: ALGWF) (“Alliance Growers” or “the Company) reports that the Company has entered into a Memorandum of Understanding (“MOU”) to acquire all the issued and outstanding shares of a private British Columbia based company, Octavia Vodka Ltd. (“Octavia”), on a one for one share exchange by way of issuance of up to 25.5 million Units, at a deemed value of $0.067 per Unit. Each Unit consists of one common share and one-half share purchase warrant exercisable at $0.10 per whole warrant for a period of two years subject to an acceleration clause. The final exchange price will be subject to valuation of the Octavia Brand and its tangible assets. We expect to complete the definitive agreement and the closing contemporaneously with the return to trade following all filings being current and the cease trade lifted.
The Octavia acquisition includes distillation, filtration and bottling equipment, the bulk of which was purchased in 2020. Under the Alliance umbrella, Octavia will continue to produce and distribute its Premium Octavia Vodka, Espresso Flavoured Octavia Vodka and a Specialty Spirit, all with low-alcohol options.
Subject to Canadian and US regulations, Octavia and Alliance will jointly develop, produce and distribute CBD infused spirits under the Octavia brand and other in-house brands, with a low-alcohol option. As the regulations surrounding the production and distribution of CBD infused spirits in both Canada and the US continue to evolve, management will be working with Octavia and our strategic partners to be ready when the time comes.
Under current Canadian and US regulations that allow CBD infused beverages, Alliance Growers along with Octavia will jointly develop, produce and distribute CBD infused zero-proof spirits, a market with growing demand.
Commenting on the acquisition, Dennis Petke, President and CEO of Alliance Growers stated, “This acquisition fits with our four pillars corporate strategy of acquiring self-financed companies with near-term revenue. Having our own distillery gives Alliance the infrastructure to develop CBD infused spirits and CBD infused alcohol-free spirits and gives us the ability to ensure quality control in the process to develop quality products.”
Dennis Petke continues, “Over the last year, during the first 3 waves of the pandemic, the Company had experienced difficulty raising capital. But now, with investors being more optimistic about the investing climate, the Company has begun securing the financing it needs to return to trading. As Alliance Growers gets closer, management continues to work diligently to finalize another year end. In addition to the August 2019 audit, the Company is also completing the August 2020 year end as well as the first 3 quarters of the year ended August 31, 2021. Concurrently with audit completion, management is working to satisfy all regulatory requirements to return to trade. We thank all stakeholders for their patience and understanding during this difficult unusual time.”
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
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. | |