Alliance Growers files prospectus for $13M offering
This capital will facilitate our funding requirements while, at the same time, optimize and leverage future dilution as we execute our strategy to build shareholder value.
Alliance Growers Corp. has filed a preliminary short-form base shelf prospectus in British Columbia, with the British Columbia Securities Commission to qualify the distribution of an aggregate of up to $13-million of units of the company.
The base shelf prospectus will enable Alliance Growers to make offerings of up to $13-million of common shares, warrants and units, or a combination thereof, of the company from time to time, separately or together. This will be offered in amounts, at prices and on terms to be determined based on market conditions at the time of each offering. This is accomplished by the company, at its discretion, filing a prospectus supplement, during the 25-month period that the shelf prospectus remains effective. The specific terms of any future offering will be established in a prospectus supplement to the shelf prospectus, which supplement will be filed with the applicable Canadian Securities regulatory authorities. Unless otherwise specified in the prospectus supplement relating to a particular offering of securities, the net proceeds from any sale of any securities may be used by Alliance Growers for general corporate purposes, including financing the acquisition of an additional 20-per-cent interest in the cannabis biotech complex, continuing operations and/or working capital requirements for acquiring cultivation licences and potential future investments in the cannabis sector.
Commenting on the filing of the preliminary short-form base shelf prospectus, Dennis Petke, president and chief executive officer of Alliance Growers, stated: “As previously announced, we have attracted and engaged the interest of the GCF Family Office out of New York with an offer to finance Alliance Growers for $4-million. Having this prospectus available to undertake offerings with GCF, as well as other financiers, allows management to focus on developing the Alliance Growers’ business model. These offerings will be done at progressively higher prices under the appropriate market conditions. This capital will facilitate our funding requirements while, at the same time, optimize and leverage future dilution as we execute our strategy to build shareholder value. We have filed this preliminary short-form prospectus to allow Alliance Growers to access capital quickly, with the right longer-term view investors, at progressively higher prices. We will execute financings within this prospectus to continue to fund our projects over time to maximize value to the company and its stakeholders while minimizing dilution. We will keep the market updated on the status of the short-form prospectus and the associated financings.”
A copy of the preliminary short-form base shelf prospectus can be found on SEDAR.
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.
We seek Safe Harbor.