Vancouver, British Columbia--(Newsfile Corp. - April 19, 2018) - Alliance Growers Corp. (CSE: ACG) (FSE: 1LA) (WKN:
A2DFYX) ("Alliance Growers" or the "Company") is pleased to report that it has executed the exclusive
agreement to acquire the licensed producer applicant, BiocannaTech Inc. ("BiocannaTech"), to become a licensed producer under
Health Canada's access to cannabis for medical purposes regulations ("ACMPR") in Quebec. Closing will be on or before April
25, 2018, five business days after the fully executed agreement. Alliance Growers will supply financing and resources to build out
the medical marijuana facility in preparation for the inspection required to obtain a growing license. Once Health Canada is
satisfied with a successful crop, Alliance Growers will be granted its distribution license.
Quebec is considered the optimal locale for an ACMPR for many reasons. The province is host to 20% of Canada's population and
has only had two ACMPR licenses approved to date with only one currently producing. Quebec is currently vastly under represented
relative to many other provinces in Canada. The Quebec government has always maintained an aggressive approach to attaining 25% of
whatever Canada's intentions are with business. Specifically regarding ACMPR licenses, Quebec has publicly stated they want Health
Canada to process all 16 of the license applications in Quebec and have them approved expeditiously. When it comes time for Quebec
licensees to purchase their supply, they will have a high priority on purchasing from Quebec growers. In Canada there are many
politicians who act on the premise that Quebec deserves continual special policy treatment and defenders of the foregoing justify
the exceptions with an observation that French language and culture in Quebec makes that province unique; that merits special
treatment.
Alliance Growers will immediately acquire the Quebec late stage licensed producer applicant, with payments issued in stages. The
terms of the BiocannaTech acquisition are as follows:
A down payment of $238,637, which has been paid.
a) The issuance of $50,000 in shares
to Canna Technology Inc. and 1,200,000 shares to 1134778 BC Ltd (5/6) and Erick Factor (1/6) ("the Recipients") will take place
within five days following execution of the purchase agreement and filing with the CSE;
b) $250,000 in shares to Canna Technology and
1,200,000 shares to the Recipients to be released immediately upon receipt of Health Canada approval for Ready to Build stage on or
before December 31, 2019;
c) $500,000 paid to Canna Technology and
1,200,000 shares to the Recipients upon receipt of municipal building permits to start construction on or before December 31, 2019;
d) $500,000 in shares to Canna Technology and
1,200,000 shares to the Recipients upon receipt of Health Canada approval of Cultivation stage on or before December 31, 2019;
e) $500,000 in shares to Canna Technology and
1,200,000 shares to the Recipients upon receipt of Health Canada LP License on or before December 31, 2019.
The initial BiocannaTech facility is configured at 10,000 sq. ft. and is attached to a 120,000-sq. ft. warehouse to provide for
phased expansion. BiocannaTech will have the capacity to produce up to 1,000 kg per year initially and be able to increase
that output in subsequent phases of expansion. The building is in the Town of Mount Royal ("T.M.R.") in Montreal. This site
is zoned for Medical Cannabis Production and BiocannaTech has the confirmation letter from the city of T.M.R. It is important to
note that the lease provides the option to buy the facility and build equity for Alliance Growers and its shareholders.
Commenting on execution of the final agreement to acquire BiocannaTech, Dennis Petke, Alliance Growers' President and CEO,
stated "We are very pleased to finalize this important and exceptional opportunity to acquire BiocannaTech for Alliance Growers and
the Company's shareholders. We are fortunate to have financing support from the partnerships we have developed over the past 12
months. In December of 2017 and earlier this year, Alliance Growers finalized funding of over $1M from a private placement and
the exercise of warrants and options. Upon conclusion of a small financing in April, we expect to complete a larger financing in
May for up to $10 Million. Alliance Growers will then be moving full steam ahead on financing the "initial build stage" of
BiocannaTech to create a premier cannabis supplier in Quebec. Management of Alliance Growers believes it is advantageous to
capitalize on the governmental goal to increase the number of ACMPR licensed companies in Quebec. We are pleased to have now
entered the grow space in Quebec whilst we negotiate additional license applicants in the province. These are exciting times for
the cannabis industry and especially for Alliance Growers as we execute on our additional plans including further acquisitions of
interests in ACMPR applicants, development of the Canna-App and finalization of the Company's Pharmaceutical Grade CDB Oil
partnership with an Israeli Medical Cannabis Company. We ask all stakeholders to watch for news on further developments of the
Cannabis Botany Centre as well. We also look forward to becoming a preferred tissue cultured plantlet supplier through the
partnership we are developing with Pharmagreen on the Cannabis Botany Centre, to not only the Quebec ACMPR community but right
across Canada."
About Alliance Growers
Alliance Growers is a diversified cannabis company driven by the Company's 'Four Pillars' Organization Plan — Cannabis Botany
Centre, Strategic ACMPR Investments, CBD Oil Supply and Distribution, and Research and Development.
Alliance Growers is working with WFS Pharmagreen Inc. advancing a new business partnership, to jointly develop and operate a
40,000-square foot facility to be the first of its kind in Western Canada to house a DNA Botany lab, extraction facility and Tissue
Culture Plantlet Production facility to service the Cannabis market and agriculture market in general. The proposed Cannabis Botany
Centre will grow Cannabis plantlets using proprietary tissue culture propagation, specifically the "Chibafreen Invitro Plant
Production System", which assures consistent composition and purity of each plantlet for the growers.
Alliance Growers has signed a fully executed agreement to acquire a licensed producer applicant, BiocannaTech, to become a
licensed producer under Health Canada's access to cannabis for medical purposes regulations ("ACMPR") in Quebec. Closing is on or
before five business days after the fully executed agreement. Alliance Growers will supply financing and resources to build out the
medical marijuana facility in preparation for the inspection required to obtain a growing license. Once Health Canada is satisfied
with a successful crop, Alliance Growers will be granted its distribution license. This acquisition allows the Company an
opportunity to become a licensed producer in the Province of Quebec and gain an in-road to provide tissue culture plantlets to all
licensed producers in Quebec.
Further, Alliance Growers has been negotiating to obtain other exclusive Canadian distribution agreements for certain
proprietary products for support of the Cannabis growing industry in addition to possible partnerships with Licensed Producer
Applicants at various stages in the Health Canada License process.
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 distribution list, please send your email address
to newsletter@alliancegrowers.com
On behalf of the board of directors of
ALLIANCE GROWERS CORP.
"Dennis Petke"
Dennis Petke
President and CEO
For more information contact:
Dennis Petke
Tel: 778-331-4266
DennisPetke@alliancegrowers.com
Rob Grace
Communications Consultant
Tel: 778-998-5431
RobDGrace@gmail.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.