Mr. Dennis Petke reports

ALLIANCE GROWERS IN TALKS TO ACQUIRE U.S. CANNABIS ASSETS

Alliance Growers Corp. has been in discussions to acquire certain cannabis assets, including licences to grow, manufacture and sell in California, with an initial focus on craft cultivators and distribution of its product. The company anticipates a short due diligence period and will receive the benefit of simultaneous financing when entering into this relationship.

Commenting on the prospects of acquiring cannabis assets in California, Dennis Petke, president and chief executive officer of Alliance Growers, stated: "Cannabis investors have made it very clear by the movement of their investment capital to the United States, either directly or through Canadian public companies, that the opportunity for maximizing the value of their investment dollars lies in the flourishing U.S. cannabis market. There are still, of course, many valuable investment opportunities in the Canadian cannabis space, such as the cannabis biotech complex, which Alliance intends to acquire a 30-per-cent interest. We see the acquisition of U.S.-based cannabis assets as a way to round out our plantlet-to-sale model and to establish an entry to promote tissue culture plantlets in the highly lucrative and quickly expanding California cannabis market. This opportunity represents another avenue for Alliance Growers to deliver on the company's mandate to build a diversified global cannabis company focused on where the market is going, not where it is today."

As previously announced on April 19, 2019, Alliance Growers announced that it has filed a preliminary short form base shelf prospectus in British Columbia, Alberta and Ontario for the distribution of an aggregate of up to $13-million of units of the company. To provide clarity, the company would like to emphasize that it is a base shelf short form prospectus, meaning Alliance Growers does not have to raise the entire $13-million at current market prices. Once the company receives final approval, it is open for two years; however, the company expects to raise the funds in the next 12 months in tranches at progressively higher prices.

As reported in Cannabis Business Plan, on Nov. 8, 2016, Californians voted overwhelmingly to make adult use legal in a state that represents the world's sixth-largest economy. In 2017, California's regulatory regime allowed only holding state-issued medical cannabis cards to legally purchase cannabis. But that hasn't stopped sales in the state from eclipsing the other states with recreational sales. In fact, sales in California represented about 34 per cent of legal sales in the United States. In 2018, California retail stores sold $2.5-billion worth of cannabis products, compared with $1.5-billion in Colorado's robust cannabis marketplace, $1-billion in Washington and $600,000 in Oregon. By 2022, the cannabis market in California is projected to jump to $7.7-billion -- boosted significantly by California's recreational cannabis market that opened for business in 2018. The California cannabis industry's total economic impact could be nearly $15-billion in the next four years.

About Alliance Growers Corp.

Alliance Growers is a diversified global medical cannabis company driven by the company's four-pillar organization plan: cannabis biotech complex, strategic ACMPR (Access to Cannabis for Medical Purposes Regulations) investments, cannabidiol oil supply and distribution, and research and technology.

Alliance Growers is working with Pharmagreen Biotech Inc. to jointly develop and operate a 63,000-square-foot cannabis biotech complex, to be the first of its kind in Western Canada to house a DNA Botany lab, cannabidiol extraction facility and tissue culture plantlet production facility to service the cannabis market and agriculture market in general.

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