WOW! What a ride it’s been!! As we’re all aware, the marijuana craze has been off the charts over the last few months and I wanted to shed some light on one of the most exciting companies we were able to feature early on and reap the benefits on an over 10X return on our initial investment.
Alliance Growers (CSE:ACG), is a company we first featured about six months ago at $0.10/share. Since then, the company hit a high of $1.39 on massive volume and has turned into one of the most talked about weed names on the market. Unlike many other companies in the space, Alliance has taken advantage of the recent surge by expanding their portfolio and building their business. They acquired a late state Quebec based ACMPR applicant (giving them a tremendous foothold into the Quebec/Eastern Canadian tissue culture plantlet market ((news release attached below)) as well as increased their stake in Pharmagreen’s subsidiary B.C. New Co (more info on that here: https://ih.advfn.com/p.php?pid=nmona&article=76375523)
These are only a few of the major milestones ACG has been able to able to achieve over the last few months and I expect a lot more news/catalysts to come over the coming quarters. The marijuana market isn’t going anywhere, the game is still early, you’re not late and there are plenty of profits to reap if you invest intelligently.
Today, the stock is currently trading around the $0.55-$0.60/share range even though the company announced a $5M financing at $0.80/share. I haven’t heard anything different so if they do in fact close the offering, $0.60 is obviously a huge bargain. All the weed stocks came off today but I see that as an opportunity. When Constellation Brands invested a total of $245M in Canopy Growth, it cemented the sector and gave investors confidence that it’s here to stay and ACG.C is working to position itself as one of the few marijuana companies with its hand in several derivatives of the MJ market (more information here: https://www.alliancegrowers.com/operations/ )
This is a name I’m going to continue to keep a very close eye so make sure you stay tuned for more updates/reports to come.
Don’t be surprised to see increased liquidity as management is working hard to expose their story to investors globally.
As always, if you have any questions, please don’t hesitate to get in touch with me anytime. I look forward to hearing from you.
Disclosure: Transcend Capital Inc. has been paid a fee
ALLIANCE GROWERS TO ACQUIRE QUEBEC LATE STAGE ACMPR APPLICANT
Alliance Growers Corp. has entered into an exclusive agreement to acquire a late-stage licensed producer applicant, Biotech Canna, to become a licensed producer under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) in Quebec. Alliance Growers will supply financing and resources to build out the medical marijuana facility in preparation for the inspection required to obtain a growing licence. Once Health Canada is satisfied with a successful crop, Alliance Growers will be granted its distribution licence.
This is a key acquisition for Alliance Growers and its shareholders, as it allows the company an opportunity to become a licensed producer in the province of Quebec and gain an in-road to provide tissue culture plantlets to all licensed producers in Quebec.
There are several key points of value that are unique and advantageous to a Quebec licence that include:
- Twenty per cent of Canada’s population is in Quebec.
- Only two licences have been approved in Quebec with only one producing (Hydropocathary).
- The Quebec government has always looked to attain 25 per cent of whatever Canada’s intentions are with business. It has publicly stated it wants Health Canada to process all the licences — 16 applications — in Quebec and have the applications approved swiftly.
- Quebec will only purchase the supply from Quebec growers, it will not go outside to other provinces for supply if it does not need to. The initial Biotech Canna facility is 10,000 square feet and is attached to a 120,000 square ft warehouse for expansion. Biotech Canna will produce up to 1,000 kilograms per year and will increase that output in phase 2 of expansion.
Alliance Growers is making an initial payment of $100,000 and $150,000 in stock. Alliance Growers will acquire 100 per cent of the Quebec late-stage licensed producer applicant in stages for a total consideration of $8-million — cash consideration of $600,000 and $7.4-million in stock at a deemed value of $1/share, the final payment of $500,000 in Alliance stock to be released from escrow upon Health Canada ACMPR approval.
Commenting on the acquisition of a Quebec late-stage licensed producer applicant, Dennis Petke, Alliance Growers’ president and chief executive officer, stated: “Management of Alliance Growers continues to carry out our mandate to build a diversified global cannabis company that will be where the market is going, not where the market is today. Alliance Growers is focused on two primary streams in the cannabis space which are the most sustainable and that are here to stay: the grow stream and the medical CBD oil stream. To optimally drive Alliance Growers growth and stature in the grow space, we have determined that acquiring a Quebec licence would be both a key driver to success and a key pillar in Alliance’s strategic business plan.”
About Alliance Growers Corp.
Alliance Growers is a diversified cannabis company driven by the company’s four pillars organization plan — cannabis botany centre, strategic ACMPR investments, CBD oil supply and distribution, and research and development.
Alliance Growers has finalized its a new business partnership with WFS Pharmagreen Inc., 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.
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