CLOSES PRIVATE PLACEMENT
Alliance Growers Corp.'s (ACG.C) private placement, originally announced on Nov. 20, 2017, has closed. The company raised $833,849.83 from the issuance of 7,580,453 units at a price of 11 cents per unit. Each unit comprises one common share and one common share purchase warrant.
Each common 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.
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 will be allocated primarily to the botany centre for property acquisition and preliminary planning and development, plus finalization of agreements in other potentially lucrative arrangements in the medical and recreational cannabis space, as well as general working capital.
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 expects to undertake further private placements over the next several months to fund its 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 pillars organization plan -- cannabis botany centre, strategic ACMPR (Access to Cannabis for Medical Purposes Regulations) investments, CBD (cannabidiol) oil supply and distribution, and research and development.