#Cannabis Stock News: Alliance Growers (CSE: $ACG) Announces Extension with BRIM For MJ Botany Centres
December 16, 2016 (Investorideas.com Newswire) Alliance Growers (CSE: ACG)and Botanical Research In Motion International Inc. (BRIM) have agreed to extend the period of time required to finalize the definitive licence agreement.
Alliance is finalizing a Definitive License Agreement with B.R.I.M. for a Canada Exclusive License to jointly develop and operate cannabis Botany Centres. The initial project is planned as a staged development of a 40,000 square foot facility being located near Vancouver, B.C., 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 planned facility will grow cannabis plantlets using proprietary tissue culture propagation, specifically the “Chibafreen Invitro Plant Production System”, which assures consistent composition and purity.
The development of the cannabis botany centre, together with partnerships and investments, is designed to provide Alliance Growers with the following:
· Produce revenue from the sale of cannabis and other plantlets under contract;
· Generate revenue from the processing and resale of cannabidiol (CBD) oil in Canada, the United States and offshore;
· Providing cold-storage facilities utilizing the one-of-a-kind cryo-tissue cold-storage technology for tissue culture preservation and regeneration as needed on a long-term basis;
· Provide extraction services as retail services for cultivators and create custom profiles for extraction for botanicals oils for retail market.
First strategic investment in a private medical cannabis company
Through a serious of strategic partnerships and investments under negotiation with licensed producers at various stages in the licence process, Alliance Growers is focused on securing long-term plantlet sale contracts for the cannabis botany centre and off-take agreements at wholesale costs for flowers to be acquired by Alliance Growers for CBD oil extraction.
Alliance Growers has negotiated terms on a 10-per-cent non-dilutive interest in a private company in Ontario that has assembled a top-tier growing team with management that has the expertise to expedite the licensed producer application process.
Joint venture with Israeli medical cannabis company
Further to the company's commitment to become a leading supplier of pharmaceutical-grade CBD oil on a global basis, Alliance Growers continues discussions setting out terms with an Israeli medical cannabis company.
Included in the discussions is the joint development of 50 hectares of land for the growth of high-quality cannabis plants, as legally permitted in an offshore, low-operating-cost jurisdiction. This would facilitate the importation of the CBD oil into various states in the United States, into Canada when legalized and into other countries as permitted.
This joint venture and other similar partnerships are what will make Alliance Growers stand out from other Canadian cannabis companies that are directly affected by Health Canada rules and regulations. Alliance Growers plans to produce and sell more CBD oil from outside Canada.
The Hemp Business Journal reports that the CBD market in the United States is growing at a rate of 30 per cent per year and forecasts that sales of CBD oils from marijuana-based sources are expected to reach $1.65-billion, or 79 per cent of the total CBD market of $2.1-billion, by 2020.
As previously announced, Alliance Growers is undertaking a private placement of up to 10 million units at a price of 20 cents per unit, for gross proceeds of up to $2-million. Each unit comprises one common share and one share purchase warrant. Each share purchase warrant will entitle the holder to acquire one additional common share in the capital of the company at a price of 30 cents per share, for a period of two years from the date the units are issued. A portion of the proceeds may be used for finalization of the company's current projected arrangements.
About Alliance Growers
Alliance Growers is a diversified cannabis company driven by the company's four-pillar organization plan: MMPR (marihuana for medical purposes regulations) cannabis production facilities, distribution network, consumer products, and research and development.
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, the news release contains forward-looking statements and information relating to the use of proceeds of the Financing, as well as the Company’s corporate strategy. The forward-looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company’s ability to carry out its business plan following the issuance of the required licenses by Health Canada. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.
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