RE:From Suspended to CEASE TRADING ORDER (BUY Rejected)Hopefully it is lifted in the next few mins and or somtime today. Report was submitted yesterday by ACG.
FORM 7
MONTHLY PROGRESS REPORT
Name of Listed Issuer: Alliance Growers Corp. (the “Issuer”).
Trading Symbol: ACG
Number of Outstanding Listed Securities: 34,225,527
Date: Month of December 2016
This Monthly Progress Report must be posted before the opening of trading on the fifth trading day of each month. This report is not intended to replace the Issuer’s obligation to separately report material information forthwith upon the information becoming known to management or to post the forms required by the EXCHANGE Policies. If material information became known and was reported during the preceding month to which this report relates, this report should refer to the material information, the news release date and the posting date on the Exchange website.
This report is intended to keep investors and the market informed of the Issuer’s ongoing business and management activities that occurred during the preceding month. Do not discuss goals or future plans unless they have crystallized to the point that they are "material information" as defined in the EXCHANGE Policies. The discussion in this report must be factual, balanced and non-promotional.
General Instructions
(a) Prepare this Monthly Progress Report using the format set out below. The sequence of questions must not be altered nor should questions be omitted or left unanswered. The answers to the items must be in narrative form. State when the answer to any item is negative or not applicable to the Issuer. The title to each item must precede the answer.
(b) The term “Issuer” includes the Issuer and any of its subsidiaries.
(c) Terms used and not defined in this form are defined or interpreted in Policy 1 – Interpretation and General Provisions.
Report on Business
1. Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact.
2.
Alliance Growers Corp. is a diversified cannabis company driven by the Company’s ‘Four Pillars’ Organization Plan. Alliance’s strategy for achieving global leadership in the cannabis space is supported by its Four Pillars business model which includes owning interests in Marijuana for Medical Purposes Regulations (“MMPR”) licensed facilities, strong distribution networks, high-quality consumer products and industry-leading R&D.
MMPR -Alliance holds a 45% interest in BC Maramed Production Ltd. (“BCMM”), which owns a leasehold interest and equipment for an 11,000 square foot production facility in Kelowna, British Columbia. BCMM has submitted an application to become a Licensed Producer of medical marijuana under Health Canada’s MMPR program.
Distribution Networks-The Company continues to look for attractive acquisition opportunities and commercial relationships in Canada, Washington State, Colorado and Oregon and other states for medical Cannabis.
Consumer Products-The Company is constantly seeking new accretive acquisition opportunities as well as commercial relationships for its Consumer Products division. Alliance is currently in discussions with entities that will source, develop, distribute and sell cannabis related paraphernalia and edibles through retail establishments located in the emerging permitted US and Canadian markets.
Research and Development-the Company will be heavily engaged in research and development including certain product development.
As the business model for Alliance evolves from just being a producer of medical marijuana to one of being a developer and distributor of a much wider range of related products, both within the jurisdictions where marijuana is permitted, and non-cannabis products in those areas not yet approved by the regulators, management continues to identify opportunities to make this transition under its Four Pillars organizational Plan.
Provide a general overview and discussion of the activities of management.
Management is currently in discussions with entities that will source, develop, distribute and sell cannabis related paraphernalia and edibles through retail establishments located in the emerging permitted US and Canadian markets. Management is also identifying opportunities to create partnerships or direct ownership of dispensaries and retail outlets in both BC and Washington State.
The Company has signed a Memorandum of Understanding (“MOU”) with Botanical Research In Motion Inc. (“BRIM”) to build a 40,000 square foot facility (the “Botany Centre”) to service the Cannabis market specifically and the agriculture market in general. BRIM will also grant to Alliance an exclusive Canadian license (the “License”) regarding certain of BRIM’s proprietary technology. The Company is working toward the execution of a definitive License Agreement in January 2017.
As well, Alliance is building strategic partnerships and distribution networks while securing long-term plantlet supply contracts and flower off-take agreements for CBD oil extractions. The CBD market is growing at a very high rate and is expected to reach over $2 billion by 2020. Alliance Growers will also target the U.S. market where 28 states plus the District of Columbia have legalized medical marijuana and 15 other states that currently allow for the sale of CBD products.
Alliance has been approved for the listing of its common shares for trading on the Frankfurt Stock Exchange under the Symbol 1LA (WKN: A2DFYX: ISIN: CA01861C1095).
The Company has announced a private placement of up to 10,000,000 units (the "Units") at a price of $0.20 per Unit, for gross proceeds of up to $2,000,000. Each Unit is comprised of one common share and one share purchase warrant. Each share purchase warrant will entitle the holder to acquire one additional common share in the capital of the Company at a price of $0.30 per share, for a period of two years from the date the Units are issued. If during the exercise period of the warrants, but after the resale restrictions on the shares have expired, the Company's shares trade at or above a weighted average trading price of $0.45 per share for 10 consecutive trading days, the Company may accelerate the expiry time of the warrants by giving written notice to warrant holders that the warrants will expire 30 days from the date of providing such notice.
3. Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law.
The Botany Centre, when complete, will total approximately 40,000 square feet and will be developed in phases. The initial phase of development is anticipated to be approximately 7,000 square feet of lab and office space. This initial component is the building block to the complete facility, and it will be first to generate revenue.
The facility will also generate revenue from co-developing products utilizing botanical oils, primarily from cannabis. The details of potential revenue are still under discussion as to proprietary formulations currently being developed and under testing. Revenues may be also be derived from extraction as retail services to cultivators, as we prepare for legalization in Canada. Further potential revenue streams will be disclosed in due course.
4. Describe and provide details of any products or services that were discontinued. For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned.
Not applicable.
5. Describe any new business relationships entered into between the Issuer, the Issuer’s affiliates or third parties including contracts to supply products or services, joint venture agreements and licensing agreements etc. State whether the relationship is with a Related Person of the Issuer and provide details of the relationship.
JOINT VENTURE - The Company has entered into discussions with an Israeli medical cannabis company to create a joint venture to develop pharmaceutical grade cannabidiol oil (CBD Oil).
Included in the discussions is the joint development of 45 hectares of land for the growth of high quality cannabis plants, as legally permitted in an offshore, low operating cost jurisdiction. It is anticipated that the majority of the plant production would be processed for the extraction of pharmaceutical grade CBD Oil. This would facilitate the importation of the CBD Oil into various states in the USA, into Canada when legalized, and into other countries as permitted.
INTEREST IN PRIVATE GROWER - The Company has entered negotiations to acquire a 10% non-dilutive interest in a private company in Ontario that has assembled a top tier growing team with management that has the expertise to expedite the license producer application process.
Through a serious of strategic alliances and investments in Licensed Producers at various stages in the license process, Alliance is focused on securing long term plantlet supply contracts and offtake agreements at wholesale cost for flower to be used for CBD oil extraction.
6. Describe the expiry or termination of any contracts or agreements between the Issuer, the Issuer’s affiliates or third parties or cancellation of any financing arrangements that have been previously announced.
Not applicable.
7. Describe any acquisitions by the Issuer or dispositions of the Issuer’s assets that occurred during the preceding month. Provide details of the nature of the assets acquired or disposed of and provide details of the consideration paid or payable together with a schedule of payments if applicable, and of any valuation. State how the consideration was determined and whether the acquisition was from or the disposition was to a Related Person of the Issuer and provide details of the relationship.
8. Describe the acquisition of new customers or loss of customers.
Not applicable.
9. Describe any new developments or effects on intangible products such as brand names, circulation lists, copyrights, franchises, licenses, patents, software, subscription lists and trade-marks.
Not applicable.
10. Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs.
Not applicable.
11. Report on any labour disputes and resolutions of those disputes if applicable.
Not applicable.
12. Describe and provide details of legal proceedings to which the Issuer became a party, including the name of the court or agency, the date instituted, the principal parties to the proceedings, the nature of the claim, the amount claimed, if any, if the proceedings are being contested, and the present status of the proceedings.
Not applicable.
13. Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness.
Not applicable.
14. Provide details of any securities issued and options or warrants granted.
The Company issued 1,100,000 common shares from exercise of stock options at $0.05 per share.
15. Provide details of any loans to or by Related Persons.
Not applicable.
16. Provide details of any changes in directors, officers or committee members.
None
17. Discuss any trends which are likely to impact the Issuer including trends in the Issuer’s market(s) or political/regulatory trends.
The trends and risks which are likely to impact the Issuer are detailed in Item 17 Risk Factors of the Issuer’s Form 2A - Listing Statement dated June 12, 2015.
Certificate Of Compliance
The undersigned hereby certifies that:
1. The undersigned is a director and/or senior officer of the Issuer and has been duly authorized by a resolution of the board of directors of the Issuer to sign this Certificate of Compliance.
2. As of the date hereof there were is no material information concerning the Issuer which has not been publicly disclosed.
3. The undersigned hereby certifies to Exchange that the Issuer is in compliance with the requirements of applicable securities legislation (as such term is defined in National Instrument 14-101) and all Exchange Requirements (as defined in CNSX Policy 1).
4. All of the information in this Form 7 Monthly Progress Report is true.
Dated January 10, 2016 .
Dennis Petke, CA
Name of Director or Senior Officer
/s/ Dennis Petke
Signature
President and CEO
Official Capacity
CCAUTB0 wrote: Reason for Reject: The Security you have selected is under a cease trading order and cannot be processed. Contact Us for more information on cease trading orders.