Alliance Growers’ Cannabis Biotech Complex Taking Major Step Forward

In addition to the requirement for any emerging business to be financially sound, companies that opt to participate in the Canadian Cannabis Sector are required to secure permitting approvals and navigate through a thorough regulatory process. This involves several steps along the path to become a licensed cannabis producer under existing Canadian law.

For the proposed Cannabis Biotech Complex to become established in Deroche, British Columbia, joint-venture partners Alliance Growers (CSE: ACG – $0.19 & OTC: ALGWF – $0.15 & Frankfurt: 1LA – €0.13) and WFS Pharmagreen Inc. have been engaged in the regulatory framework with the objective to win final approval for their ambitious business plan. This work achieved an important milestone this week when the facility was granted unanimous approval from a municipal committee representing the Fraser Valley Regional District (FVRD) Electoral Area.

The JV partners are advancing development of their Cannabis Biotech Complex, a 26-acre agricultural property that will be established to cultivate high quality cannabis tissue cultured plantlets (a plant start far superior to cloning) for the wholesale market to licensed growers in Canada and eventually globally as well. The main component of the Complex will be the planned Cannabis Biotech Center, comprising a 62,000 square foot, state of the art Tissue Culture Plantlet Production Facility, a DNA Botany Facility and a Cold Storage Facility to preserve clients plant strains to allow for propagation when necessary. In addition to the Cannabis Biotech Centre, the property will house a cutting-edge Extraction and Distillation Facility as well as 5 acres of high tech greenhouses to offer Nursery services to cultivators and for their own use. This integrated complex will be the first of its kind in Canada.

The key technology behind the Tissue Culture Propagation Facility is the proprietary Plant Production System, CHIBAFREEN a new, highly evolved, state-of-the art in vitro plant production method, introduced by the company Botanical Research In Motion Inc. (B.R.I.M.) for exclusive use by WFS Pharmagreen Inc. for various kinds of high quality transplant production in the company’s Biotech Centre. With the objective to become the largest producer of cannabis plantlets, Pharmagreen is advancing its technology to enable the creation of cannabis plantlets that are all genetically identical, and completely free of germs and diseases. Pharmagreen will also contribute additional services related to identification and storage of live cannabis plants, and extraction of CBD oils, plus support and laboratory services for other agricultural sectors as part of the operation of the Cannabis Biotech Complex.

Navigating the Regulatory Process

With the approval in hand from the FVRD Committee for the proposed development, the proposal now moves to the FVRD Planning Board later this month for ratification, which historically is merely a formality. Once ratified, the development proposal can then advance through to the permitting stage. Once permits have been granted the JV partners will be able to commence construction of the new facility.

Meanwhile, Pharmagreen has submitted its application for the development of the Cannabis Biotech Complex to Health Canada back in June 2018, and the necessary Access to Cannabis for Medicinal Purposes License is now at the review stage.

Ongoing Development of Business Plan Continuing

While the comprehensive review and approval process moves along to enable the ultimate objective of production and sales of cannabis to commence, Alliance Growers is active on other fronts to ensure the plan is ready when the license is granted.

The Company has acquired Biocannatech, a late-stage ACMPR applicant in Montreal, Quebec to function in a similar capacity primarily serving the Quebec market. Funding is in process through a CAD$2,000,000 private placement that has been well-received in the market, with several tranches of the offering to close in the following weeks. This and subsequent offerings will underwrite both the Biocannatech facility and a its 30% equity ownership and profit sharing in the Cannabis Biotech Complex.

Alliance is also active to build its leverage for the sales and distribution side of the cannabis sector, with its strategy of partnering with entities experienced in retail and in the operation of on-line platforms for the distribution of both medical and recreational Pharmagreen and Alliance branded cannabis products.

Alliance has a unique integrated business plan supported by the strength of its partnership with Pharmagreen, to secure access to high quality cannabis plantlets, and make inroads in the medicinal and adult-use cannabis markets.

Conclusion

As the launch date approaches for the legalization of recreational cannabis consumption in Canada, Alliance Growers is advancing towards fulfillment of its full cycle business plan. However, a detailed and time-consuming regulatory process must first be satisfied to enable the full scope of its business to be realized. Alliance Growers has engaged the appropriate professionals and is therefore committed to successfully navigate the framework and is advancing through the process.

The Strategic Partnership with Pharmagreen will position Alliance Growers at the ownership level in the cultivation and development of high quality cannabis plantlets that support its downstream interests in growing and distribution. This full cycle integration will provide leverage to profit centers at all phases of the cannabis sector.

Alliance Growers has achieved significant progress for each of the core elements of its growth strategy and the Company is also addressing the funding necessity through an equity offering that is expected to close shortly. With the financial resources in place, and the regulatory process advancing, Alliance Growers is moving forward to achieve its ambitious goals in providing tissue culture plantlets to the medical cannabis sector as well as for the anticipated launch of legalized cannabis consumption in Canada. Recommendation: BUY.

For important disclosures, please read our disclaimer.

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