Alliance Growers has already acquired interests in two ACMPR applicants, most notably 100% of BiocannaTech, a late-stage ACMPR applicant based in Québec, and Canwe, a private company based in Ontario, that has applied for its ACMPR license and is currently in the review and security clearance stage.
Building partnerships with growers will allow Alliance Growers to secure long-term plantlet sale contracts for the Cannabis Biotech Complex and off-take agreements for wholesale cost cannabis flowers for CBD oil extraction.
Alliance Growers has entered into an exclusive agreement to fully acquire Biocannatech Inc., located in Mont-Royal, Québec. Biocannatech is in the final expedited phase of Health Canada’s “Access to Cannabis for Medical Purposes Regulations” (ACMPR) approval for the production and sales of Medical Marijuana.
Biocannatech Inc. has a leased a 10,000 square foot facility in Mont-Royal with an option-to-purchase agreement. Permits have been filed with the municipality to renovate the facility. This facility is expected to produce $5,000,000 per year.
Biocannatech Inc. is also in discussions to lease the adjacent facility with an option-to-purchase agreement. This facility is 17,900 square feet with a growing area of 16,000 square feet. The additional growing area is expected to produce $12,000,000 in revenue for a combined total $17,000,000 per year in revenue from both facilities.
The currently leased facility is expected to be producing product by late fall of 2018 with full production in 2019. The adjacent property could be set up and operational in 2019 pending necessary approvals.
Alliance Growers will supply financing and resources to build out the medical marijuana facility in preparation for the inspection required to obtain a growing license. Once Health Canada is satisfied with a successful crop, Alliance Growers will be granted its distribution license.
Québec is considered the optimal locale for an ACMPR producer. The province is host to 20% of Canada’s population, yet it has only had two ACMPR licenses approved to date with only one currently producing. In this respect, Québec is currently vastly underrepresented relative to other provinces in Canada. The Québec government has always maintained an aggressive approach to obtaining 25% of any industry in which the rest of Canada intends to do business. Specifically regarding ACMPR licenses, Québec has publicly stated that they want Health Canada to process all 16 of the license applications in the province and have them approved expeditiously. When it comes time for Québec licensees to purchase their supply, they will have a high priority on purchasing from Québec growers.
CANWE GROWERS INC.
Alliance Growers has acquired terms on a 5% interest in New Maple Holdings, the parent company of its wholly owned subsidiary Canwe Growers Inc., which is a private Ontario-based company that has applied for a producer’s license under ACMPR.
Canwe has access to a 22 acre property 1.5 hours north-west of Toronto, where it plans to build a facility focused on producing clean, premium quality cannabis. The company has amassed a highly qualified team which includes licensed producer MedReleaf Corp.’s former Head Grower Jack Yu, an expert cannabis grower well-versed in the cultivation of cannabis from seed to sale.
In January 2018, Canwe received confirmation from Health Canada that it has completed the security clearance stage and has entered the final review stage of the application process. The company has retained an experienced project management firm to oversee the design and build of its planned state-of-the-art production facility and is projected to be licensed and operational by early 2019.
JAMAICAN CANNABIS COMPANY INVESTMENT
Alliance Growers is in discussions with a private licensed Jamaican cannabis company regarding a significant strategic investment. Alliance Growers has commenced due diligence for the investment of this company which is planning for an IPO later this year.
The private Jamaican company has established operations and production facilities with a Tier 1 Cultivator’s license and a Tier 3 Processing license, allowing them to cultivate and process cannabis for medical, scientific, and therapeutic purposes, including the manufacturing of cannabis-based products. The company’s mission is to produce quality medicinal products in Jamaica that carry the unique qualities demanded in Jamaica’s holistic healing culture. The Jamaican company will be exporting cannabinoids and terpenoids through joint ventures with selective Canadian and European Licensed Distributors, and develop a new world class cannabis flowers, extracts, and infused products.
Alliance Growers will continue seeking further strategic investment opportunities in additional ACMPR companies to secure plantlet sales and CBD offtake agreements.