Alliance Growers secures $4-million equity facility
“…this offering reflects the progress we have made in advancing the company over the past two years. This offering is a significant catalyst for the growth of the company, providing us with the means to ensure optimal execution of our strategy to build shareholder value.”
ALLIANCE GROWERS SECURES $4 MILLION EQUITY FACILITY
Alliance Growers Corp. has executed a share purchase agreement with a U.S. family office, Global Corporate Finance (GCF), of New York, N.Y., United States. Total gross proceeds from the offering for the company are expected to be $4-million, before deducting fees and expenses, over several months, being drawn down in multiple tranches at progressively higher prices.
The $4-million equity facility offered by GCF is structured such that it allows the company, solely at its request, to draw down on the facility equity over a period of up to 30 months subject to certain pre-agreed floor pricing at progressively higher prices. This commitment from GCF will contribute toward the company’s financial obligations for the acquisition of a 30-per-cent interest in the cannabis biotech complex, advancing the Biocannatech cannabis application and the company’s other projects.
Commenting on the GCF financing, Dennis Petke, president and chief executive officer of Alliance Growers, stated: “We are very proud to have attracted and engaged the interest of the GCF family office out of New York with an offer to finance Alliance Growers. Having this equity facility available as we need it allows management to focus on developing the Alliance Growers business model. We believe that the success of this offering reflects the progress we have made in advancing the company over the past two years. This offering is a significant catalyst for the growth of the company, providing us with the means to ensure optimal execution of our strategy to build shareholder value.”
GCF’s investment will be made in shares through targeted issues at the market share price at the sole discretion of the company. The company shall pay GCF a commitment fee equal to 2 percent of the total commitment in common shares, of which 400,000 shares are due upon signing of this commitment letter.
“The investment in Alliance Growers is a logical step in GCF’s strategy to invest in cannabis companies with unique strategic investments in the cannabis space and the potential to develop significant value over the next two to five years,” said Randy Rivera, managing director at GCF.
About Alliance Growers Corp.
Alliance Growers is a diversified global medical cannabis company driven by the company’s four-pillar organization plan: cannabis biotech complex, strategic ACMPR (Access to Cannabis for Medical Purposes Regulations) investments, CBD (cannabidiol) oil supply and distribution, and research and technology.
Alliance Growers is working with Pharmagreen Biotech Inc. advancing a new business partnership to jointly develop and operate a 63,000-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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