Alliance Growers Corp. (ACG.C) has arranged a non-brokered 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. 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 45 cents 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.
A portion of the private placement may be completed in accordance with the exemption set out in B.C. Instrument 45-534 (exemption from prospectus requirement for certain trades to existing security holders) pursuant to the terms and conditions of this offering news release and B.C. Instrument 45-534. Alliance shall make the pro rata offer available to all persons who, as of the record date of Nov. 7, 2016, held common shares in the capital of the company. In accordance with the requirements of the security holder exemption, the company confirms there is no material fact or material change related to the company which has not been generally disclosed.
The company plans to allocate the proceeds of the private placement primarily to the botany centre for property acquisition and preliminary planning and development, plus finalization of agreements in other potentially lucrative arrangements in the medical and recreational cannabis space, as well as general working capital. The financing is subject to regulatory approval. 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.
Commenting on the private placement, Dennis Petke, Alliance's president and chief executive officer, stated: "This next round of financing will allow Alliance to accelerate its plans to develop the botany centre as the core of a truly global cannabis company. It will also will allow us to formalize agreements on other initiatives that Alliance has identified in the medical and recreational Cannabis industry to further develop our business model to take advantage of the imminent legalization of recreational cannabis in both Canada and certain significant states in the U.S. The primary such initiative is to become a leading supplier of high-quality CBD (cannabidiol) oil to multiple channels in the cannabis industry for both medical and recreational use in Canada and the U.S."
About Alliance Growers
Alliance Growers is a diversified cannabis company. Alliance is finalizing an agreement with Botanical Research In Motion International Inc. for a Canada-exclusive licence 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.