CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT
Alliance Growers Corp.'s (ACG.V) private placement originally announced April 7, 2017, has closed the final tranche of the financing. The company raised $163,900 for the issuance of 1.49 million units at a price of 11 cents per unit.
Each unit is comprised of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share 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.
All shares and any shares issued upon the exercise of a warrant will be subject to a hold period of four months and one day from the date of closing, expiring March 8, 2018.
The proceeds from this financing, in conjunction with the initial private placement with Alumina Partners, will be used primarily for the Cannabis Botany Centre in order to enable Alliance to initiate its ACMPR 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. 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 permits 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 is a diversified cannabis company driven by the company's four-pillar organization plan -- Cannabis Botany Centre, strategic ACMPR investments, 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 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. 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. 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 licenced producer applicants at various stages in the Health Canada licence process.