Post by
Fillthegap on Jun 30, 2017 9:41pm
Hidden gem of the cannabis sector!
June 29, 2017 Vancouver, B.C. Alliance Growers Corp. (CSE: ACG; FWB: 1LA; WKN: A2DFYX) (Alliance Growers or the Company) announces updated potential market for tissue cultured marijuana clone plantlets to be produced at the Cannabis Botany Centre and an update on financing activities. Alliance Growers is continually updating the potential market for tissue cultured marijuana clone plantlets utilizing published data of the annual plants required by licensed growers. According to recent published data, dedicated grow-out space of the top 50 percent of Licensed ACMPR producers require 7,300,000 plants currently with ongoing expansion to 16,000,000 plants by 2019. The additional 50% of producers should add similar quantities bringing the total to 14,000,000 plants currently and with expansion estimated to be 32,000,000 plants required annually, by 2019. New licenses to be added by July 1st 2018 could push the number even higher to an estimated 22,000,000 plants required annually with expansion plans pushing out to over 40,000,000 marijuana plants to meet market supply. The Cannabis Botany Centre is expected to produce and sell a minimum of 3,000,000 plantlets annually at a gross profit of $4.00 per plantlet for estimated gross profit of $12,000,000. 3,000,000 plantlets represents approximately 20% of the requirements of the top 50% of Licensed ACMPR producers and approximately 10% if all current Licensed ACMPR producers, including planned expansion. Alliance Growers believes that tissue cultured marijuana clone plantlets will become the standard with Health Canada as we move toward legalization.https://www.newcannabisventures.com/tissue-culture-for-cannabis-cultivation-could-replace-cloning-as-the-gold-standard/. To fund the Cannabis Botany Centre, Alliance Growers is in negotiations on two avenues of non-dilutive financing. One being the issuance of Class A preferred shares as previously announced and the second with a Streaming company. A German financial institution has notified Alliance Growers that a proposal is being prepared for our review within the coming two weeks. On June 7, 2017, the Company announced our agreement with a German licensed producer applicant, Plantisaneco Gmbh (Plantisaneco), whereby Alliance Growers will earn a significant percentage of the equity in Plantisaneco in return for providing certain services and expertise. On the same day as that announcement, Alliance Growers was approached by a private Streaming Finance Company that provides non-equity financing solutions for cannabis producers. The payments from Alliance Growers to the Streaming company would in a sense, be a form of royalty based on a percentage of production. The discussions include funding the Cannabis Botany Centre as well as the 11,000-square foot production facility in Kelowna, British Columbia the Kelowna, currently under application with Health Canada. Commenting on the financing options, Dennis Petke, Alliance Growers President and CEO commented, We have been working diligently to provide the most efficient, non-dilutive financing options to fund our projects, especially the Botany Centre. We are extremely pleased to be in discussions with the streaming financing company. We are providing them with updated market potential numbers for their further review to estimate the cash flow potential of Cannabis Botany Centre. The streaming finance company originally approached Alliance Growers about financing the Plantisaneco operation in Germany, as they have already partially financed a grow operation in that country. Alliance Growers continues to build relationships within the investment community simultaneously through private placements, a Class A preferred share offering and now streaming financing. We are getting closer to finding the right combination and the right fit with the various financing sources and expect to full finance all of our projects in the coming months.. Read more at https://www.stockhouse.com/companies/bullboard?symbol=c.acg&postid=26424438#6J8X28xuZbRflJrg.99