Alliance Growers has executed the founders agreement with a private Health Canada Licenced Producer Applicant based in Ontario that has assembled a top tier growing team with management that has the expertise to expedite the license producer application process.
Previously, on December 6, 2016, Alliance announced that it has entered negotiations to acquire a 10% non-dilutive interest in this private company. After a series of negotiations, the parties have agreed on a 5% non-dilutive interest and are finalizing terms this week.
The next step is the execution of the final agreement with a $25,000 first payment for the equity investment. The agreement will include long term plantlet supply contract and an offtake agreement at wholesale cost for flower to be used for CBD oil extraction at the Cannabis Botany Centre.
Commenting on the strategic investment, Dennis Petke, Alliance Growers President and CEO said: “Through a serious of strategic alliances and investments in Licensed Producers at various stages in the license process we will further our business model of supplying plantlets to growers from our Cannabis Botany Centre, in addition to acquiring high quality flower for extraction. By making strategic alliances in Eastern Canada we expect to identify partners for the joint development of multiple Botany Centres in Canada under our exclusive license of the B.R.I.M. technologies. The development of these Botany Centres in Canada and in other countries will significantly add to the value of Alliance, along with interests we expect to acquire in multiple Health Canada Licensed facilities”.