ALLIANCE GROWERS ADVANCES QUEBEC ACMPR APPLICATION
Alliance Growers Corp.,(ACG.C) further to its news release dated April 19, 2018, wherein it was disclosed that the company executed an exclusive agreement to acquire BiocannaTech Inc. to become a licensed producer under Health Canada's access to cannabis for medical purposes regulations (ACMPR) in Quebec, has issued the first tranche of shares to satisfy the agreement terms and close the acquisition of BiocannaTech.
"BiocannaTech is now fully under the Alliance Growers' umbrella, advancing the Alliance business model and creating value for our shareholders. We have great confidence in obtaining this licence in a timely manner due to the existing team in Quebec and because we have access to some of the top grow talent in Canada as well as the best application process team," commented Dennis Petke, president and chief executive officer of Alliance Growers Corp. "Given the advanced stage of the BiocannaTech application and the political motivation by Quebec and the federal government to make sure Quebec gets its fair share of ACMPR licences, we expect approval by as early as mid-October. Alliance is fortunate to have financing commitments that coincide with our capex needs over the next four months and beyond. A huge bonus for Alliance, once we are granted an ACMPR licence, we will be able to extend that licence to other Alliance grow facilities in other provinces with an application process that takes only two or three months to complete. This acquisition is significant in that it assists Alliance in accelerating future licences in addition to fortifying the balance sheet and feeding the income statement."
Closing of the acquisition occurred on April 25, 2018, five business days after the fully executed agreement was completed, and, as such, the company has issued 1,369,491 shares at a deemed price of 29.5 cents per share.
Alliance will provide financing and resources to build out BiocannaTech's medical marijuana facility in the town of Mount Royal in Quebec 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. This acquisition allows the company an opportunity to become a licensed producer in the province of Quebec and gain an inroad to provide tissue culture plantlets to all licensed producers in Quebec.
About Alliance Growers Corp.
Alliance is a diversified cannabis company driven by the company's "four pillars" organization plan and cannabis biotech complex, strategic ACMPR investments, CBD (cannabidiol) oil supply and distribution, and research and technology.
Alliance is working with WFS Pharmagreen Inc., advancing a new business partnership, 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.