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Seed to Sale Business Model Progress Report


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Alliance Growers Corp. (ACG.C)provided a progress report on its Seed to Sale business strategy. Alliance Growers has created a vertically integrated company starting with the production of genetically perfect, disease free plantlets from the Cannabis Biotech Complex. This provides the plants required for the production of 99% pure CBD oil derived from the Dana Strain in a joint commercial hemp operation. Additionally, future ACMPR production in Quebec and other ACMPR investments will provide flower at wholesale and/or cost for Cannabis CBD oil extraction. The addition of Spyder Vapes Inc., an established, upscale, 'high-end with competitive prices' retail store chain for distribution of products produced from the Dana strain and from Cannabis CBD oil will give Alliance Growers and its group of companies a significant advantage in cost and margin compared to competitors.

Cannabis Biotech Complex

Alliance Growers' first Cannabis Biotech Complex being developed in Mission, BC, in partnership with WFS Pharmagreen Inc., will derive the bulk of its revenue from the production of tissue culture plantlets as required by ACMPR licensed producers and eventually all cultivators of various cannabis strains to maintain strain-consistency. The Complex will also house facilities for cold storage of plants, CBD oil extraction, and continued development of new technologies in house.

Current progress with the Cannabis Biotech Complex is as follows:

  • Pharmagreen's delegation is to present on July 10, 2018 to the FVRD (Fraser Valley Regional District), Electoral Area Service Committee, overview of proposed development, flood hazard assessment report and flood control measures. This step is part of the process required for obtaining a site building permit.

  • Pharmagreen principals and its engineering team are currently evaluating proposals for the Biotech Complex LED lighting solutions submitted by top tier LED horticultural light manufacturers.

  • Structural, Mechanical, Electrical, HVAC, and Geotechnical Engineering companies have been contracted to provide advanced engineering solutions to meet the eco-friendly high-tech building requirements for the Cannabis Biotech Complex.

Licensed Cannabis Applicant

The purchase of the late stage ACMPR applicant BioCannaTech Inc. in Quebec is another key acquisition for Alliance Growers and its shareholders. It allows the Company to enter the Eastern Canadian market, particularly Quebec, which is in need of commercial production and supply.

BioCannaTech will compliment and strengthen our current position in the market as an industry leader. BioCannaTech will capitalize on the expertise of the current team in place in Quebec to maximize the potential for the Company. The Quebec team has extensive experience in the Quebec market regarding language, licensing procedures and cannabis production facility construction. The ability to leverage our presence in Eastern Canada is added value when considering our current Federal Program in Canada.

Current progress with the BiocannaTech is as follows:

  • BioCannaTech has contracted Ample Organics to ensure Seed to Sale Software that satisfies ACMPR record keeping regulations.

  • All construction plans have been submitted for permitting to the municipality. Upon receipt of the permits, BioCannaTech will immediately begin the construction of the facilities. The team handling the buildout of BioCannaTech's late stage file holds extensive experience in the development and management of ACMPR files in Quebec. The Company considers this a great advantage in the Quebec market.

  • Our Quality Assurance Manager has extensive experience in Q & A field and will have a major role in executing our plans for R & D in Quebec and the international market.

  • The General Contractor in charge of the file has built other facilities in Quebec and the Engineers in charge, "Experts Counsels Desjardins" have the requisite experience for the Quebec market to address the requirements set forth in the ACMPR building requirements.

  • Our Master Grower has already been licensed to grow for severely ill patients under the predecessor MMAR (Medical Marijuana Access Regulations) program. His expertise is unparalleled in the industry and he is motivated by personal compassion.

Alliance Growers' BioCannaTech has established a team of experts to expedite the required procedures in place, and to optimize any subsequent licensing requirements required by Health Canada.

Spyder Vapes

Alliance Growers retail arm plans an aggressive expansion plan across Canada. Spyder Vapes will be employing a multi-pronged approach with plans to add additional retail stores this year in jurisdictions where Spyder Vapes can apply for legal cannabis distribution licenses.

Current progress with the Spyder Vapes is as follows:

  • Spyder Vapes' plan to grow this revenue will come from adding multiple new stores, developing a thriving on-line store, and by adding new mass-market products such as CBD oil, and cannabis products once recreational use is approved.

  • The first application in Alberta will be completed this week as Spyder has committed to lease space in Calgary approved for Cannabis distribution under the Alberta regulations.

  • The application process and search for available space for Vancouver stores is already underway.

OTCQB Listing

Alliance Growers is pleased to announce that it has applied for a listing on the OTCQB Venture Market, both in response to increased interest from investors in the United States, and to ensure continued and greater trading liquidity for the Company's shares across different markets. The Company has engaged the services of John LaPorta, President, Glenridge Partners, LLC.

Glenridge Partners are experts at helping foreign companies in gaining access to the U.S. capital trading markets.

Dennis Petke, President and CEO of Alliance Growers commented: "The application for a listing on the OTCQB was made at an opportune time for the Company, as we are soon to be breaking ground on our Cannabis Biotech Complex with Pharmagreen in Mission BC; nearing the award of the ACMPR license for BiocannaTech in Quebec and expecting aggressive growth in the coming months from our retail arm Spyder Vapes. We are in an aggressive growth mode for our Seed to Sale business enterprise. The listing augments our goal to provide greater liquidity overall and greater, more comprehensive access to our U.S.-based investors."

About Alliance Growers Corp.

Alliance Growers is a diversified cannabis company driven by the Company's 'Four Pillars' Organization Plan — Cannabis Biotech Complex, Strategic ACMPR Investments, CBD Oil Supply and Distribution, and Research and Technology.

Alliance Growers is working with WFS Pharmagreen Inc. advancing a new business partnership, to jointly develop and operate a 58,000-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 Biotech Complex 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 recently announced that it will acquire established Ontario based retailer Spyder Vapes Inc. This is the first step in the development of a true vertically integrated Seed to Sale business for Alliance Growers.

About Spyder Vapes Inc.

Founded in 2014 by entrepreneur Dan Pelchovitz, Spyder Vapes is an established chain of three high-end vape stores in Ontario. The Spyder brand is defined by its high-quality proprietary line of e-juice, liquids and exclusive retail deals, dispensed in uniquely designed stores creating the optimal customer experience. Revenues for the initial two stores totalled $733,000 for the year ending January 31, 2018. The third store opened in December 2017.

Spyder Vapes is currently sourcing retail locations throughout Alberta and British Columbia where it seeks to establish a presence and apply for cannabis retail licences pursuant to recently announced provincial legislation. The additional retail locations will allow Spyder Vapes to leverage its retail and brand-building expertise, to offer customers quality cannabis products and, more specifically proprietary CBD products from Alliance Growers as legislation permits. Spyder Vapes' existing revenues and potential growth in the vape business will strengthen its ability to pursue opportunities in the soon to be launched recreational cannabis marketplace.

Spyder Vapes' retail and distribution focus is an ideal fit for Alliance Growers' mission to build a diversified global cannabis company focused not on where the market is today, but where it is going. Spyder Vapes neatly fits into Alliance Growers' emerging network of interests in licenced cannabis growers, cannabidiol (CBD) oil extractors, new agricultural technologies, and its own Cannabis Biotech Complex. Spyder Vapes, as the retail arm for Alliance Growers, will create a true Seed (plantlet farm) to Sale (retail stores) business for the Company and its customers.

For additional information, please visit Spyder Vapes' website at www.spydervapes.com.

For further information, please visit the Company's website at www.alliancegrowers.com