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Alliance Growers Corp
Symbol C : ACG
Shares Issued 82,526,361
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Alliance Growers to finish cannabis complex in Q1 2020

2018-12-06 11:26 ET - News Release

Mr. Dennis Petke reports


Alliance Growers Corp.'s cutting-edge facility will contribute to the maximization of the supply of quality cannabis production with the use of tissue culture starter plantlets to be produced at the company's cannabis biotech complex in British Columbia, Canada. The cannabis biotech complex, being developed with its partner WFS Pharmagreen Inc., is under construction and is anticipated to be completed in the first quarter of 2020. The company also wants to take the opportunity to inform shareholders that it is on track to file its financial statements, management discussion and analysis, and certifications of annual filings for the year ended Aug. 31, 2018, on or before Dec. 20, 2018, ahead of the Dec. 31 deadline.

Commenting on Alliance Growers' business strategy, Dennis Petke, president and chief executive officer, stated: "The cannabis market space is growing at a rapid pace and supply issues are becoming a serious problem for both medical and recreational cannabis. Alliance Growers' strategy is to be positioned where the market is going, and not where it is today, and this is being accomplished primarily via the development of the cannabis biotech complex. Supply issues, due to contamination, further confirm the need to supply growers with the highest-quality tissue cultured plantlets, along with other revolutionary and beneficial services from the facility to maximize each and every crop of all growers who utilize tissue cultured plantlets for their starts. We are pleased with the progress and new financing initiatives being developed recently by both Pharmagreen and Alliance, the details of which will be disclosed in due course. We look forward to 2019 being the year that the joint vision of the two respective companies is realized and significant value is created for all stakeholders."

Recently cannabis industry news indicates that certain significant producers of cannabis have experienced production problems, such as mildew and mould, resulting in a negative financial impact to these producers. The tissue culture facility, the main component of the cannabis biotech complex, has been designed to minimize, if not eliminate, problems such as these through its world-class engineered clean-room level production facility. The facility will produce tissue cultured plantlets for sale to medical and recreational licensed producers which are healthy, disease-free and pesticide-free. Doing so will enable growers to produce high-quality crops, which will meet, or exceed, Health Canada production standards. This allows producers to maintain their crop cycles and minimize contamination risks that would otherwise cause them to be unable to meet production obligations, as was recently experienced by large cannabis producers. As a result, the use of tissue cultured plantlets will contribute significantly to maintaining a healthy and consistent supply to the public, which is currently a major issue.

Growers can also maximize their production space by eliminating the need for mothers and clones' rooms thereby increasing their flowering space as much as 20 per cent in some cases. Recovering this space for growing would contribute positively to the revenue of producers.

The cannabis biotech complex will also provide cultivation consulting services. This service will focus on the development of optimal nutrients and cultivation schedules for the company's client's proprietary strains, as well as Pharmagreen's strains. Having the optimal cultivation protocols for each strain under cultivation greatly reduces the risk of potential nutrient lockup, which can stunt the plants' growth and cause a reduction in plant size and yield. For those seeking additional protection from potential loss of proprietary strains due to plant theft or plant death or for long-term off-site genetics preservation in a lab environment, the cannabis biotech complex will offer a proprietary service of live tissue cultures storage with its cold storage technology.

Alliance Growers is also excited about its partnership with Pharmagreen to produce quality hemp from the CBD Dana strain. The CBD Dana strain will be produced with all female plantlets, for commercial production of hemp biomass which can be used to produce 99-per-cent cannabidiol crystallite. In either form, thanks to the high CBD content of as much as 14 per cent CBD and less than 0.3 per cent tetrahydrocannabinol (THC), the production of CBD Dana has significant revenue potential for the company as it can be distributed globally without onerous regulatory requirements currently in place for marijuana plants. CBD Dana hemp plants can yield close to 200 kilograms of CBD isolate in one acre, as opposed to planting from hemp seed, which yields approximately seven kg of CBD isolate per acre. CBD Dana strain is a hemp plant that, by design, allows for international shipping of plantlets without restrictions to the world's largest CBD market, the United States. This proprietary strain, meeting FDA requirements in the U.S., for CBD consumer products to be derived from hemp plants makes CBD Dana strain, with female plants only, the optimal CBD farming model.

The current retail cannabis industry status in Canada is at its infancy stages with the recent legalization on Oct. 17, 2018, and as the home grower market expands in the next 24 months, the cannabis biotech complex will be a future supply source of guaranteed no pests, no diseases, certified genetics, tissue cultured starter plantlets for the Canadian homegrown market. It is committed to ensuring that the public is provided with a consist ecologically sound product and that producers, in doing so, can meet their production obligations and maximize revenue in this burgeoning market.

About Alliance Growers Corp.

Alliance Growers is a diversified cannabis company driven by the company's four-pillar organization plan: cannabis biotech complex, strategic ACMPR (Access to Cannabis for Medical Purposes Regulations) investments, CBD (cannabidiol) 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 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.

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