CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
Alliance Growers Corp. (ACG.C) has closed the first tranche of its private placement announced April 7, 2016. The company raised $179,300 with the issuance of 1.63 million units at a price of 11 cents per unit.
Each share purchase warrant will entitle the holder to acquire one additional common share in the capital of the company at a price of 21 cents per share, for a period of two years from the date the units are issued. The warrants are subject to an acceleration clause after the resale restrictions on the shares have expired. The expiry time of the warrants can be accelerated if the company's shares trade at or above a weighted average trading price of 30 cents per share for 10 consecutive trading days.
In addition, the company has paid agent fees and finders' fees totalling $1,760 and issued 16,000 broker warrants exercisable at 21 cents on the same terms as the private placement share purchase warrants. All securities issued pursuant to the placement will be subject to a hold period of four months and one day from the date of closing.
The proceeds from this financing, in conjunction with the initial private placement with Alumina Partners, will be used primarily to secure the property for the cannabis botany centre in order to enable Alliance to initiate its ACMPR (access to cannabis for medical purposes regulations) licence with Health Canada.
Commenting on the financing, Dennis Petke, Alliance Growers' president and chief executive officer, said: "We are very pleased with the strong response to this recent financing. Based on the demand, it is expected that it will be oversold like the five-cent placement that was completed in October, 2016. The company will continue to close a series of private placements at progressively higher prices over the next several months to fund the business plan. We are quite anxious to secure the land for the cannabis botany centre, not only to initiate our application for the ACMPR, but to begin the planning stage of the development. We would like to thank our shareholders for their continued support as we work towards realizing our vision of becoming a successful global cannabis company."
About Alliance Growers Corp.
Alliance Growers has executed an agreement with Botanical Research In Motion International Inc. for a Canada exclusive licence 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.
Alliance Growers has rights to 50 per cent of BCMM, a late-stage applicant that submitted its ACMPR application to Health Canada in 2014, and is also making a strategic investment in another private company preparing to apply for an ACMPR producer licence. Additionally, the company is investing in several cannabis industry participants.