Vancouver cannabis company Alliance Growers Corp has secured access to a $5 million equity facility from an undisclosed U.S. private equity firm. The company will have the option to increase its access to $10 million, the proceeds of which will be used for project development. Founded in 2014, Alliance Growers has formed a partnership to develop and operate a 40,000 square-foot facility to support a DNA botany lab, extraction and tissue-culture plantlet production. The facility is intended to serve the cannabis and agriculture industries.
PRESS RELEASE
Alliance Executes Term Sheet for $5M to $10M Equity Facility
March 3, 2017 – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG; FWB: 1LA; WKN: A2DFYX) (“Alliance Growers” or the “Company”) announces that the Company has executed on the term sheet for a financing commitment offered by a U.S. based private equity firm for a $5 Million equity facility in a series of private placements with an option to go to $10 million. This arrangement was previously referenced in a news release on February 14, 2017.
The purpose of the Equity Facility is to provide the Company with financial flexibility and control over the financial requirements for its many exciting and integrated projects, providing access to capital as deemed necessary by the Company.
In the past two years, this U.S. based private equity firm has offered and signed definitive agreements with other strong companies in the cannabis sector. The firm approached Alliance with a similar arrangement based on their belief in the Alliance Growers’ ‘Four Pillars’ business strategy. Incredible opportunity exists in the cannabis and cannabis-related sectors and there are few teams in the industry that can fully avail themselves of all that opportunity without adequate funding. The industry is rapidly changing and evolving and companies need to position themselves for where the industry is going, like Alliance has done. Part of that positioning for Alliance consists of its strategy to add value to every Licensed Producer individually, like Canwe and for the entire industry as a whole, and to quickly evolve to utility-like levels of reliability, consistency of product or experience, and stringent high standards of quality control.
“We are very excited to have received the strong vote of confidence from this notable financial equity firm. The fact that they share our view of where the cannabis market is going is a significant endorsement of Alliance Growers longer term business strategy. This offer of financing will provide the Company with the financial flexibility to ensure that it can execute on its business plan. We look forward to updating investors on our progress, ” said Dennis Petke, Alliance Growers’ President and CEO.
About Alliance Growers
Alliance Growers Corp is a diversified cannabis company driven by the Company’s ‘Four Pillars’ Organization Plan – Cannabis Botany Centre, Strategic ACMPR Investments, CBD Oil Supply and Distribution, and Research and Development.
Alliance Growers has executed an agreement with Botanical Research In Motion International Inc., for a Canada Exclusive License 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. The proposed Cannabis Botany Centre 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.
Further, Alliance Growers has been negotiating to obtain other exclusive Canadian distribution agreements for certain proprietary products for support of the Cannabis growing industry in addition to possible partnerships with Licensed Producer Applicants at various stages in the Health Canada License process.
For further information, please visit the Company’s corporate website at www.alliancegrowers.com or the Company’s profile at www.sedar.com.
If you would like to be added to Alliance Growers’ news distribution list, please send your email address to newsletter@alliancegrowers.com
On behalf of the board of directors of
ALLIANCE GROWERS CORP.
Dennis Petke, President and CEO
For more information contact:
Dennis Petke/Tel: 778-331-4266/DennisPetke@alliancegrowers.com
Rob Grace, Corporate Communications Consultant/Tel: 778-998-5431/RobGrace@alliancegrowers.com
Photo courtesy of Alliance Growers Corp
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