ALLIANCE GROWERS TO ACQUIRE QUEBEC LATE STAGE ACMPR APPLICANT
January 02 2018 - 7:41AM
InvestorsHub NewsWire
Mr. Dennis Petke reports
ALLIANCE GROWERS TO ACQUIRE QUEBEC LATE STAGE ACMPR
APPLICANT
Vancouver, BC -- January 02, 2017 -- InvestorsHub NewsWire --
Alliance Growers Corp. (C:ACG) has entered into an exclusive
agreement to acquire a late-stage licensed producer applicant,
Biotech Canna, to become a licensed producer under Health Canada's
Access to Cannabis for Medical Purposes Regulations (ACMPR) in
Quebec. Alliance Growers will supply financing and resources to
build out the medical marijuana facility in preparation for the
inspection required to obtain a growing licence. Once Health Canada
is satisfied with a successful crop, Alliance Growers will be
granted its distribution licence.
This is a key acquisition for Alliance Growers and its
shareholders, as it 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.
There are several key points of value that are unique and
advantageous to a Quebec licence that include:
- Twenty per cent of Canada population is in Quebec.
- Only two licences have been approved in Quebec with only one
producing (Hydropocathary).
- The Quebec government has always looked to attain 25 per cent
of whatever Canada's intentions are with business. It has publicly
stated it wants Health Canada to process all the licences -- 16
applications -- in Quebec and have the applications approved
swiftly.
- Quebec will only purchase the supply from Quebec growers, it
will not go outside to other provinces for supply if it does not
need to. The initial Biotech Canna facility is 10,000 square feet
and is attached to a 120,000 square ft warehouse for expansion.
Biotech Canna will produce up to 1,000 kilograms per year and will
increase that output in phase 2 of expansion.
Alliance Growers is making an initial payment of $100,000 and
$150,000 in stock. Alliance Growers will acquire 100 per cent of
the Quebec late-stage licensed producer applicant in stages for a
total consideration of $8-million -- cash consideration of $600,000
and $7.4-million in stock at a deemed value of $1/share, the final
payment of $500,000 in Alliance stock to be released from escrow
upon Health Canada ACMPR approval.
Commenting on the acquisition of a Quebec late-stage licensed
producer applicant, Dennis Petke, Alliance Growers' president and
chief executive officer, stated: "Management of Alliance Growers
continues to carry out our mandate to build a diversified global
cannabis company that will be where the market is going, not where
the market is today. Alliance Growers is focused on two primary
streams in the cannabis space which are the most sustainable and
that are here to stay: the grow stream and the medical CBD oil
stream. To optimally drive Alliance Growers growth and stature in
the grow space, we have determined that acquiring a Quebec licence
would be both a key driver to success and a key pillar in
Alliance's strategic business plan."
About Alliance Growers Corp.
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 has finalized its a new business partnership
with WFS Pharmagreen Inc., 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.
We seek Safe Harbor.
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