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Receives Final Permits, Begins Construction at Quebec ACMPR Facility, and Aquires Expansion Space


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Alliance Growers Corp. (CSE: ACG.C) announced that all local permits are in place for construction to commence at BiocannaTech, the Company's wholly owned Quebec facility undertaking an Access to Cannabis for Medical Purposes Regulations ("ACMPR") application in Montreal, Quebec. Architectural design plans for the construction of the facility have been completed, permits received and demolition has commenced at the site on September 20, 2018.

The Health Canada ACMPR authorizes licenses required for cultivating and processing cannabis, the sale of cannabis for medical purposes and analytical testing and research in relation to cannabis. Applicants must clear a series of stages to ultimately receive such licenses. Now that the ACMPR "Ready to Build" stage has been reached by BiocannaTech, Alliance Growers President and CEO Dennis Petke and a delegation of Company executives and financiers were in Montreal last week and over the weekend to officially commence development of the BiocannaTech facility infrastructure.

As well, Alliance Growers management has leased the adjacent building for Phase 2 expansion. These two buildings are the only two locations in the Town of Mount Royal that are permitted for marijuana production. A moratorium on such further development within TMR has been recently implemented.

The progression of development at the BiocannaTech facility will take place in 3 phases:

Phase 1- 10,000 sq. ft existing facility

-      Alliance Growers will provide financing and other resources to build out its wholly-owned subsidiary, BiocannaTech's medical marijuana facility in the town of Mount Royal, Quebec, in preparation for the inspection from Health Canada.

-      construction plans include a retro fit of the existing building that was previously used for cold storage. This is ideal as insulated panels are already in place.

-      there is no need to allocate permanent space for a "mother" room as Alliance Growers will be providing plantlets to the facility from its Cannabis Biotech Complex in Deroche, BC.

-      permits for construction are now in place, with estimated completion by December, 2018.

-      estimated license to produce for first cultivation targeted by January 31, 2019, with presales inspection by mid March 2019.

Phase 2- 17,000 expansion opportunity

-      Alliance Growers has signed the lease to acquire another 17,000 square feet in a second building, including 15,000 for growing and 2,000 for existing offices, which includes a full loading/shipping dock.

-      the second building is directly adjacent to the existing facility and can easily be connected to add more space and improve operating efficiency.

Phase 3- Additional ACMPR licenses in other Provinces

-      After receiving the ACMPR in Quebec, Alliance Growers is planning an application for an ACMPR license in BC, and potentially Alberta as well.

About Alliance Growers Corp.

Alliance Growers is a Diversified Global Medical 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 Pharmagreen Biotech Inc. advancing a new business partnership, to jointly develop and operate a 62,000-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 Cannabis Biotech Complex's main facility is the Cannabis Biotech Centre which will grow Cannabis plantlets using proprietary tissue culture propagation, specifically utilizing the "Chibafreen Invitro Plant Production System", which allows for more tissue cultured plantlets to be produced in less space and less time.

Through its wholly owned subsidiary, BioCannaTech Alliance is in the final expedited phase of Health Canada's "Access to Cannabis for Medical Purposes Regulations" (ACMPR) approval for the production and sales of Medical Marijuana. BioCannaTech Inc. has a leased a 10,000 square foot facility in Mont-Royal, Québec with permits in place from the municipality to renovate the facility. Initial expansion plans include an adjacent 17,000 square foot facility, comprised of 15,000 square feet of growing space, and 2,000 square feet of existing offices and a full loading/shipping dock.

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