ACG CEO, Dennis Petke, Reflects on the Evolution of Cannabis and the Successful Road Ahead for ACG January7, 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 2021 year-end review from the Company’s CEO, Dennis Petke, to highlight some of ACG’s key achievements throughout 2021 along with his opinion on the Company’s positioning heading into 2022. Statement from ACG CEO, Dennis Petke Dear Shareholders, Thanking you all for your continued support, loyalty, and belief in Alliance Growers. I wanted to close out the year with my reflections on the cannabis industry, Alliance Growers achievements-to-date and to express my optimism for the future of the industry and Alliance Growers. Cannabis Market Review -Canada The legalization of cannabis in Canada just had its third anniversary, Legalization has resulted in the emergence of a multibillion-dollar industry, new jobs and tax revenue. There have also been fewer cannabis-related drug convictions among young people. For years leading up to the start of legalized cannabis in Canada in 2018, it was estimated that a legal and regulated pot industry would turn out to be $7 to $9 billion, however 2020’s results were positive in that adult sales more than doubled from 2019 to hit $2.6 billion. There is still much upside to the industry. Supply constraints were an issue in the early days, followed later by a glut of cannabis as the retail rollout across the country proved more slow-moving and caught up in red tape than earlier anticipated, especially in Ontario, the country’s most populous province. After opening up a trickle of stores over the first year or so, Ontario changed its approach in 2020 and opened the proverbial floodgates, with regulators now allowing for 120 new retail shops per month as of earlier this year. The cannabis sector was at a peak as far as investor interest was concerned right around Canada’s legalization date in October, 2018. Then came a long downturn that lasted until the fourth quarter of 2020, where stocks began to move up again. Consolidation has been the name of the game across the industry, while the burgeoning US cannabis scene has provided competition to the Canadian companies. -USA Cannabis stocks were steadily climbing through the summer and fall of 2020. As Biden took office in January 2021, stocks continued to rise on the hope that federal reform was around the corner. However, as the reality set in of how challenging it is to pass federal cannabis reform, stocks started to fall. Yet, recent stock prices don't reflect the positive momentum of cannabis company financials. The earnings of many cannabis companies have been on an upward trajectory, with some reaching profitability. As we close out 2021, it's an appropriate time to review the developments in the cannabis industry. In many ways, 2021 was set to be a banner year for cannabis. With Democrats sweeping the 2020 elections in the US, the industry's mood was optimistic on legalization being within reach. 2021 saw many positive legislative developments. A block of north eastern states passed legislation to legalize adult use. In February, New Jersey made the first move to regulate adult-use cannabis, while also decriminalizing possession. In March, New York followed suit with much fanfare, given the market's potential size (the state's market is estimated at $4.6 billion in annual sales in year one). Sandwiched between Massachusetts and New York, Connecticut also passed adult-use laws in June. In July, Virginia then became the first state in the South to legalize adult-use cannabis. As more states go legal, it becomes increasingly difficult for those on the side-lines to sacrifice tax dollars from cannabis sales to neighbouring states. I expect the green wave of legalization to continue into 2022. In addition to the states listed above, Arkansas, Florida, Idaho, Mississippi, Missouri, Nebraska, North Dakota and Ohio all have cannabis-related initiatives on their 2022 ballots. These strong fundamentals should give investors reason to believe that stock prices will rebound. Financials should improve as the market for cannabis continues to grow. I remain optimistic on the industry as we head into 2022. Consumers still overwhelmingly support cannabis legalization. In addition to new states coming online and expanding the market, innovation is also helping to drive new demand among niche demographic groups, growing the overall consumer base. Strong Foundation for Success Alliance Growers has assembled a commendable business strategy with a strong foundation of business developments upon which to build and prosper in 2022, with a focus on self-financed business arrangements with near-term revenue. - Alliance Growers Branded Cannabis Product – Alliance Growers has developed a strategic relationship with an Ontario Licensed Producer, Canwe Growers, a wholly owned subsidiary of New Maple Holdings Ltd. We expect to be working together to produce and distribute Alliance Growers branded product, beginning with Pre-Rolls made from the superior medical grade cannabis grown by the Canwe Growers’ team and distribution via the Canwe Growers’ network. - Pharmagreen Biotech Complex – Alliance Growers has the option to acquire up to 30% ownership of the Tissue Culture Complex and has acquired 10% to date. Given COVID and other challenges in the cannabis space, PharmaGreen has decided to develop a smaller facility initially to reduce capex in order to reduce construction time to get its products to the market as soon as possible. Despite various challenges, PharmaGreen continues to negotiate the closing of a $30M Bond Offering in Europe, which will fund the down-sized Cannabis Biotech Complex and operations in the US. - All-encompassing Hemp Licence, Hemp Products and a Cannabis Research Licence – Alliance Growers is finalizing a “self-financed” arrangement with a Quebec company licensed to sell hemp products and hemp seeds as well as provide seed breeding for hemp cultivators. Completed products include hemp products formulated to support and boost the gastrointestinal health and immune system. They have several other products under development, subject to research. In addition to their all-encompassing Hemp License, the Quebec company also has a “wide scope” Cannabis Research Licence from Health Canada, which includes Hot and Cold Press Extraction and H20 Solventless Extraction. - CBD Infused Spirits - Alliance Growers has entered into a MOU to acquire all the issued and outstanding shares of a private British Columbia based company, Octavia Vodka Ltd. 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 both low-alcohol and no-alcohol options. 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. Optimism and Success – Alliance 2.0 Driving Alliance Growers back on the road to success and building value for all stakeholders is a challenge that I embrace. Along with the new Alliance team currently being assembled, I intend to make 2022 the start of a process by which we create and grow revenue streams, reorganize the capital structure, enhance corporate governance, increase public awareness of our stock, and continue to build Alliance Growers into a dominant, successful publicly traded company in the cannabis industry. Through these careful measures, my goal is for the Company to return maximum value to you, our loyal shareholders. Thank you again for your support. Here's to a safe, healthy, and prosperous new year. 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 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. |