ALLIANCE GROWERS COMPLETES PRIVATE PLACEMENT
Alliance Growers Corp. (CSE: ACG) (“Alliance Growers” or the “Company”) is pleased to announce that its private placement announced September 27, 2016 (the "Private Placement") was oversubscribed. The Company raised a total of $215,000 for the issuance of 4,300,000 units (the "Units") at a price of $0.05 per Unit.
Each Unit is comprised of one common share and one-half share purchase warrant. Each full share purchase warrant will entitle the holder to acquire one additional common share in the capital of the Company at a price of $0.10 per share, for a period of two years from the date the Units are issued. If during the exercise period of the warrants, but after the resale restrictions on the shares have expired, the Company's shares trade at or above a weighted average trading price of $0.15 per share for 10 consecutive trading days, the Company may accelerate the expiry time of the warrants by giving written notice to warrant holders that the warrants will expire 30 days from the date of providing such notice.
In addition, the Company has paid Agents and Finders Fees totalling $8,150 and issued 74,000 broker warrants exercisable at $0.10 on the same terms as the Private Placement share purchase warrants. All securities issued pursuant to the placement will be subject to a hold period of four months and one day from the date of closing, which is February 20, 2017.
Commenting on the financing, Dennis Petke, Alliance Growers President and CEO said, “We are very pleased with the overwhelming response to this first of several financings that will be undertaken over the next several months to fund the business plan. Unfortunately, we were not able to allocate as many units as were requested by investors. A portion of these funds will be utilized as the first step in executing the joint development of the Botany Centre, details of which will be in the near future. The Botany Centre will be the cornerstone of the Four Pillars Organization Plan”.
Mr. Petke continued, “In addition to the Botany Centre, Alliance continues to build on other aspects of the business, which will be disclosed over the coming weeks, as we continue to develop our business model to take advantage of the pending legalization both in Canada and the US. When it happens, we will be ready. We would like to thank our shareholders for their continued support as we work towards realizing our vision of becoming a successful global cannabis company”.
About Alliance Growers
Alliance Growers Corp (ACG: CSE) is a diversified cannabis company driven by the Company’s ‘Four Pillars’ Organization Plan - MMPR cannabis production facilities, distribution network, consumer products, and research and development.
Alliance is finalizing 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 facility 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. As well, Alliance has been negotiating to obtain exclusive Canadian distribution agreements for certain proprietary products for support of the Cannabis growing industry in addition to possible partnerships with existing MMPR licensed and soon-to-be licensed facilities.
For further information please visit the Company’s corporate website at www.alliancegrowers.com