FINALIZES QUEBEC LATE STAGE ACMPR APPLICANT ACQUISITION
Alliance Growers Corp. (ACG.C) has finalized the terms and conditions of the exclusive agreement to acquire a late-stage licensed producer applicant, Biocannatech, 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.
The terms of the deal call for Alliance Growers to pay staged consideration totalling $600,000 and 7.4 million shares valued at a deemed price of $1 per share, in return for 100 per cent of Biocannatech.
- $100,000 cash plus 1.35 million shares on signing;
- 1.45 million shares released immediately at application approved for ready to build;
- $500,000 plus 1.2 million shares paid immediately at permits approved stage;
- 1.7 million shares released immediately at cultivation stage;
- 1.7 million shares released immediately at Health Canada ACMPR approval.
The shares will be issued at the closing, and all but 1.35 million shares will be held in escrow and released in stages following completion of each of these milestones.
This is a key acquisition for Alliance Growers and its shareholders, as it integrates various components of the company's four-pillar organization plan, whereby the company will become a licensed producer in the province of Quebec, along with the recently announced development of the cannabis botany centre. This move opens access for distribution of tissue culture plantlets, not only to Biocannatech, but potentially to all licensed producers in Quebec.
Quebec represents approximately 20 per cent of Canada's population, and the province is anxious to develop a base of skilled licensed producers to provide a self-sustaining supply for Quebec-based demand of both recreational and medical cannabis.
The initial Biocannatech facility is configured at 10,000 square feet and is attached to a 120,000-square-foot warehouse to provide for phased expansion. Biocannatech will have the capacity to produce up to 1,000 kilograms per year initially, and be able to increase that output in subsequent phases of expansion.
Commenting on finalizing the acquisition of a Quebec late-stage licensed producer applicant, Dennis Petke, Alliance Growers' president and chief executive officer, stated: "Quebec's ACMPR licences are currently under-represented relative to other provinces in Canada. Management of Alliance Growers believes it is advantageous to capitalize on the mandate to increase the number of ACMPR licensed companies in Quebec. We are pleased to have now entered the grow space in Quebec as we negotiate additional licence applicants in this province. In addition to growing, we look forward to becoming a preferred tissue-cultured-plantlet supplier to the Quebec ACMPR community. Today's announcement supports Alliance Growers' mandate to build a diversified global cannabis company that will be focused on where the market is going, not where the market is today.
"Today's bellwether announcement is an important part of Alliance Growers significant growth plans for 2018, as we take the company to where the industry is going. Alliance Growers is concentrating 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. The company wishes to thank investors for their support and patience as it progresses during this exciting time for the cannabis industry."
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 (cannabidiol) oil supply and distribution, and research and development.
Alliance Growers has finalized a new business partnership with WFS Pharmagreen 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 entered into an exclusive agreement to acquire a late-stage licensed producer applicant, Biotech Canna, to become a licensed producer under Health Canada's 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.