EQUITY PARTNERSHIP FOR LICENSED CULTIVATION FACILITY IN CITY OF LONG BEACH
Alliance Growers Corp. (ACG.V) has entered into negotiations with a private company for an equity partnership for a licensed cultivation facility in the city of Long Beach. The partnership will be for a 100% ownership in a 6000 sq. ft. licensed medical marijuana cultivation building and a 50% or higher ownership of the cultivation business.
The intention would then be to add a Manufacturing License which would add an additional valuable revenue stream to the business. This would provide full ownership of the building and two revenue streams while leaving the running of the day-to-day business to the private company team. Alliance also expects to provide tissue cultured plantlets to the facility and potentially other facilities in California via an "in-house" lab arrangement. Alliance will be working with a long-time legal contact in California to begin working through the various rules and regulations with regard to foreign ownership of a US cannabis operation.
Dennis Petke, Alliance Growers' President and CEO, commented on the proposed partnership. "We are very excited to have been presented this tremendous opportunity in the heart of the marijuana-friendly state of California, in a location with the stature of The City of Long Beach. The market is making tremendous inroads into the world's largest consumer market, The United States of America and such a move fits in perfectly with the Company's business plan and strategy of positioning itself as a global cannabis company developing Alliance to be where the cannabis market is going. We look forward to sharing significant additional financing and business implementation updates with investors as we progress. We look forward to an exciting summer and fall at Alliance Growers."
To fund this venture along with our other projects, Alliance continues to further its multiple financing initiatives. The company continues to negotiate terms with a cannabis streaming company and continues to work on closing its multiple private placements by getting the message directly to investors and the financing community. This will be accomplished through multiple investor presentation events over the coming months. Certain events will be arranged by third parties and others will be internally generated. Recently, on July 20, 2017, the Company participated in a special invitation-only event presenting to an audience of high net worth qualified investors and institutions in Kelowna, B.C. at The Kelowna Yacht Club. Alliance expects to make additional presentations in the coming months to the same type of audience by the same organizer.
About the California Cannabis Market
California, is the 6th largest economy in the world and is the largest and most influential state in the cannabis industry in terms of production, consumption, and cultural influence. The legalization of adult use in California has already started to show that it has far-reaching effects, both within the state and nationally. California. New Frontier, the cannabis Big Data and analytics authority, in partnership with Arcview Market Research, the leading publisher of cannabis market research has released its 2016 California Legal Cannabis Market State Profile, which shows the potential growth of the adult use market. The report finds that over the next four years, annual legal cannabis sales will grow at a compound annual growth rate of 23.1%, from $2.8 billion in 2016 to an estimated $6.5 billion by 2020.
About Alliance Growers
Alliance Growers Corp is a diversified cannabis company driven by the Company's 'Four Pillars' Organization Plan - Cannabis Botany Centre, Strategic ACMPR Investments (Access to Cannabis for Medical Purposes Regulations), CBD Oil Supply and Distribution, and Research and Development. Alliance Growers has executed an agreement with Botanical Research In Motion International Inc., for a Canada Exclusive License 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 rights to 50% 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's license. Additionally, the Company is investing in several cannabis industry participants, ranging from co-developing a Cannabis App for use by the cannabis industry and its markets, to negotiating business arrangements with several companies for the purchase and sale between the parties of live cannabis plants, tissue culture plantlets and other cannabis products and services.