ALLIANCE GROWERS UPDATES PROGRESS WITH WFS PHARMAGREEN
-Tommy Chong Endorsement and Cana Companion Included in Potential Alliance
July 27, 2016 – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG) (“Alliance Growers” or the “Company”) is pleased to report that, further to its press release of June 30, 2016, the Letter of Intent with WFS Pharmagreen Inc. (“Pharmagreen”) on obtaining an exclusive license for the commercialization of the “Chibafreen Invitro Plant Production System” in Canada is progressing much better than expected and has led to additional joint business opportunities to be explored. The Exclusive License from Pharmagreen covers the marketing, distribution and sales of all present and future Tissue Culture plantlet products utilizing the proprietary “Chibafreen Invitro Plant Production System” for the jurisdiction of Canada. Alliance has advanced on its discussions regarding additional joint business interests and opportunities with Pharmagreen, including a potential full merger of Pharmagreen and Alliance Growers, subject to continued extensive due diligence and analysis.
Growing Cannabis using tissue culture propagation, specifically the “Chibafreen Invitro Plant Production System”, assures consistent composition and purity of each plantlet for the growers, regardless of where and by whom the plants are cultivated. Licensing Pharmagreen’s proprietary process provides tremendous advantages including rapid and ef?cient growth of plants that will result in 30-50% shorter production period. Plantlets that are produced under uniformly controlled environment in the protected area are free from pest insects/pathogens and the disturbance of outside weather. Additionally, such plantlets are of very high quality, disease free and geared for optimal growth. Each plantlet will always have the same genetic makeup as its parent stock.
Commenting on the business development opportunities, Dennis Petke, Alliance Growers’ President and CEO stated, “We could not be more impressed, the more we delve into the breadth and depth of Pharmagreen’s innovations, that their technology will give Alliance the ability to generate tremendous cash flow from the burgeoning Cannabis industry, as well as the agriculture industry in general. In addition to the Tissue Culture plantlet products, we are impressed with the development and rapid growth of Pharmagreen’s subsidiary, Canna Companion, and the strong involvement of celebrity Tommy Chong”.
While moving toward the execution of a formal license agreement, both Alliance and Pharmagreen agree to possible further development of a “Full Spectrum DNA Botany Lab”, which would be the only such lab facility in Western Canada. A unique blend of clean room lab facilities including a botanical oils extraction lab would be built under the heading of “Botany Center”. Licensing opportunities for the “Botany Center” for the UK and European Union are subject to further negotiations and terms.
From a monetary perspective, Pharmagreen’s business initiatives are on the cutting edge of functional innovations that not only bear significant profit margins, but also provide a model of micro propagation technology that can be applied across the entire agriculture industry on a mass production scale with “Chibafreen Invitro Plant Production System”. To put this in perspective, potential revenue from this system is only limited by the size of the production facility.
