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Thu, 01 December 2016 19:02:25

Alliance Growers Moves MJ Botany Centre Forward


Alliance Growers Corp. (ACG.V) has engaged a clean-room-qualified architect and a construction consultant for the design and development of its cannabis botany centre, under licence from Botanical Research In Motion Inc. (BRIM), previously announced Oct. 26, 2016.

Alliance and BRIM have identified and agreed on the engagement of Gary Fields Architecture, a senior architecture firm from British Columbia that is qualified in designing clean-room labs and also has clearances for high-security construction projects such as Health Canada's MMPR (marijuana for medical purposes regulations) commercial facilities and federal-level airports. Gary Fields Architecture will not only bring the design to the project, but also act as a general contractor, making it an effective one-stop solution for the overall project construction.

To assist in monitoring the entire construction process and serving as the company's representative, Alliance Growers has engaged Kruger Pacific Ltd., a construction consultant with 25 years of experience.

Commenting on the progress of the botany centre project, Dennis Petke, Alliance Growers' president and chief executive officer, said: "We are very pleased to be getting the project under way so quickly after announcing the [memorandum of understanding]. It is expected that the definitive licence agreement will be executed within the next week. Since the announcement of the MOU, we have identified several properties that are ideal locations upon which to construct the cannabis botany centre. In addition, BRIM and Alliance Growers have identified several significant additional revenue streams in both the medical and recreational cannabis sectors that we are very excited to begin implementing upon the closing of our current round of funding, which has attracted a lot of attention in this explosive space."

Mr. Petke continued: "Alliance Growers continues to develop its business model to take advantage of the imminent legalization of recreational cannabis in both in Canada and the United States. Now that the November elections have given way to new opportunities in the United States, we are readying the company on many fronts, including joint ventures with licensed producers for flower and pharmaceutical-grade CBD [cannabidiol] oil, as well as leased land arrangements for significant acreage to grow hemp. Several announcements will be made in the coming days, revealing our multiple significant initiatives helping us realize our vision of becoming a successful global cannabis company.

"We would like to thank our existing shareholders and all new investors for their continued support as we work towards becoming a leading global cannabis company."

As previously announced, the licence granted to Alliance Growers will allow it to jointly develop and operate multiple botany centres in Canada, which will include the following:

BRIM's proprietary Chibafreen in vitro plant production system; BRIM's proprietary cryotissue cold storage; Extraction lab to provide custom profiles for extraction for botanical oils for retail market; Botanical DNA service laboratory for certifying plant tissue as the genetic level; BRIM's proprietary research for cannabis for large, commercial-scale micropropagation production when permitted.

Potential revenues from the various components for this size facility are estimated by BRIM as follows:

The tissue culture lab and cryotissue cold storage, with the custom clean-room lab design, are scalable and designed for all flora to serve the agriculture industry -- up to $500,000 in monthly gross revenue potential; Cryotissue cold storage, managing up to 5,000 samples estimated at $10 per month per sample -- up to $50,000 in monthly gross revenue potential; Revenue from co-development of custom profiles for extraction for botanical oils for retail market -- estimated up to $250,000 in monthly gross revenue potential.

The botany centre facility will also generate revenue from co-developing products utilizing botanical oils, primarily from cannabis. The details of potential revenue are still under discussion as to proprietary formulations currently being developed and under testing. Revenues may also be derived from extraction as retail services to cultivators, in preparation for legalization in Canada. Further potential revenue streams will be disclosed in due course.

Alliance is finalizing a definitive licence agreement with BRIM for a Canada exclusive licence to jointly develop and operate cannabis botany centres. The initial project is a planned 40,000-square-foot facility being developed near Vancouver, B.C., 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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