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ALLIANCE GROWERS (ACG: CSE) THE FOUR PILLAR STRATEGY
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THE FOUR PILLAR STRATEGY
PILLAR 1 - LICENCED MEDICAL MARIJUANA PRODUCERS
BIOCANNATECH
late-stage ACMPR applicant based in Quebec.
initial 10,000 square-foot facility. Alliance Growers has the
option to lease or purchase the building next door with an
area of 20,000 sq. ft. as an expansion, which will yield
38,000 of grow space with the canopy
acquisition is stipulated to consist of $0.6 million in cash and
$7.4 million in shares (at a price of $1 per share
Projected Gross Revenue is 8 Million per year and With
additional approval to expand - 16 Million per year.
Quebec represents approximately 20% of Canada’s
population and it is currently under-represented in regards
to ACMPR licenced companies
CANWE
Canwe offers Alliance the future potential to access
international markets with their plantlet product. The private
company is based in Ontario and is currently in the review
and security clearance stage of the ACMPR licensing
process.
Canwe has access to a 22-acre property,
Canwe boasts a strong team of highly sought after industry
veterans, some of whom formerly worked at ACMPR
licensed MedReleaf Corp. (TSE: LEAF).
Canwe plans to construct an initial 80,000 square foot
cultivation centre, with the potential to expand the centre to
200,000 square feet over two floors.
As per the deal terms, Alliance has subscribed for 375,000
New Maple common shares at a price of $1.00 per share,
representing roughly 5% of total outstanding shares
JAMAICAN INVESTISSEMENT
at February 27, 2018, the company announced that it had
entered advanced stage negotiations with a private
Jamaican cannabis company for a “significant strategic
investment”.
Alliance reported that the private grower had established
operations and existing production facilities, as well as
licenses to cultivate and process cannabis for medical,
scientific and therapeutic purposes.
With a population of approximately 2.8 million, there is also
the potential for the local market due to high acceptance of
usage among the population.
INVESTMENT IN ISODIOL INTERNATIONAL INC
As at November 30 2017, the Company had 540,000 and a fair value of $793,800.
The shares are held in escrow and will be released in equal
tranches on September 18, 2017, March 18, 2018 and
September 18, 2018.
At March 13, 2018 ACG is pleased to announce that it has
entered into a Business Development Services Agreement
with Mr. Stuart Gray that also includes the provision of
certain Public Relations Service. Stuart was founder and
CEO of Laguna Blends Inc. Laguna acquired Isodiol
International Inc. (ISOL CSE, ISOLF OTCQB)
These partnerships secure long-term plantlet sales for the Botany Centre, wholesale cost for flower to be acquired for CBD oil extraction, and ongoing support for the producers
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PILLAR 2
THE CANNABIS BOTANY CENTRE
On December 28, 2017, Alliance announced that it had
entered into a binding Letter of Intent (“LOI”) with WFS
Pharmagreen Inc. (“Pharmagreen”) to acquire an equity
stake in Pharmagreen’s subsidiary, BC New Co.
BC New Co will build and operate the cannabis botany
centre.
In the US, Pharmagreen currently holds a 100% interest in
Canna Companion Products Inc.
Alliance Growers as a strategic partner with Pharmagreen is
investing $3 Million dollars for a 30% interest in the
Cannabis Botany Center in Mission, B.C..
management has advised FONDAMENTALE RESEARCH
CORP that instead of a share purchase option, the parties
have agreed that Alliance will be given a right of first
refusal on future equity raises of BC New Co.
Annual gross revenue from the tissue culture operations are
expected to be $50 Million per year with 10 million plantlets
produced and sold at $5 per plantlet.
Commenting on the strategic investment in Pharmagreen,
Dennis Petke, Alliance Growers' President and CEO, noted
"We are very fortunate to be able to strategically invest in
Pharmagreen at such a discounted price (0.25 /SHARE) to
the anticipated opening public market price of $1/ share.
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PILLAR 3 -- CBD OIL PRODUCTION AND DISTRIBUTION
JOINT VENTURE WITH ISRAELI CANNABIS
Alliance Growers is finalizing terms on a 20% equity
investment in an Israeli CBD Oil extraction company.
ACG will have off-take rights to buy 20% of oil production at
or near cost for global distribution
high-tech extraction allows for production of the highest
quality pharmaceutical-grade CBD oil.
legal 50-hectare grow operation in an offshore, low operating
cost jurisdiction
ACG has secured first government permit to
grow cannabis with 4-year exclusivity
CBD DANA
Alliance announced on March 5, 2018, that it intends to
expand the planned cannabis botany centre with the
addition of a greenhouse facility which will be capable of
year-round harvests of a proprietary strain of CBD.
The strain, named “CBD DANA” has a tested content of 10%
CBD and less than 0.03% THC, making it non-psychoactive.
According to the company, this strain exhibits CBD content
that is up to 10 times greater than that of regular hemp.
The company intends to build-out an initial 200,000 square-
foot green house with production capacity of up to 15,600
kg of CBD cannabis per annum.
CANNA COMPANION PRODUCTS INC
There is A planned equity investment into Canna
Companion Products Inc. (“Canna”). Canna, a wholly
owned subsidiary of WFS PharmaGreen Inc., produces
and sells hemp-based pet supplements.
As part of the arrangement, Alliance would invest $300,000
into Canna, and receive exclusive long-term CBD oil supply
contracts when Canna expand into the Canadian market
(planned for mid 2018 or when recreational marijuana use
is legal).
Growth in this side of the business could imply significant future profits, as the cannabis-infused products segment of the cannabis industry exhibits impressive potential for profitability.
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PILLAR 4 Research and Development
Botanical Research In Motion International (B.R.I.M.)
B.R.I.M. develops and currently holds rights to new
technologies for controlled and precise production of
cannabis plants, such as the ‘Chibafreen Process’.
BC New Co. will be utilizing these licenced technologies for
the production of plantlets at the Mission Botany Centre.
The Botany Centre will also allow B.R.I.M. to do continued
research on behalf of BC New Co. Tissue-culture cultivation
has the potential to become the new standard for the
cannabis industry.
The consistency of product lends well to future government
regulation of molecular composition and potency.
There is also further potential to apply these same
technologies into other agricultural industries
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sources
w.ww.alliancegrowers.com/
w.ww.sedar.com
w.ww.researchfrc.com
This DD is for informational purposes only and does not constitute a recommendation to buy or sell any security.