alliance growers · 27/03/2019 · dilutive to the interest of alliance. alliance has been...
TRANSCRIPT
ALLIANCE GROWERS
Investor Presentation
CSE: ACG FWB: 1LA OTCQB: ALGWF
ESTABLISHING A LONG-TERM PRESENCE IN THE CANNABIS INDUSTRY THROUGH DIVERSITY, SCIENCE AND TECHNOLOGY
© 2019 Alliance Growers Corp.
Forward - Looking Statements Disclaimer
Certain information regarding Alliance Growers Corp. (the Company) contained herein may constitute forward-looking
statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact.
Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give
no assurance that such expectations will prove to have been correct. The Company cautions that actual
performance will be affected by a number of factors, many of which are beyond the company’s control, and that
future events and results may vary substantially from what the company currently foresees.
The Company’s forward-looking statements are expressly qualified in their entirety by this cautionary statement.
3
WHAT WE ARE NOT: A Company focused on growing as
much cannabis as possible with a view to making profits
through large scale facilities.
WHAT WE ARE: Unique. Building a global cannabis
Company with a goal to establish a foundation for long term
involvement in the Cannabis Industry, by utilizing cutting
edge technology and science to provide unique products
and services to the industry.
4
In a gold rush, the best strategy is not to gamble by staking one's
own solitary claim, but by opening a general store and selling
picks and shovels to every single claim-staker in the county.
Likewise in the present green rush, tomorrow's best business
models and most pervasive brands will be positioned to add value
for every LP individually and for the entire industry as a whole, and
will quickly evolve to utility-like levels of reliability, consistency of
product or experience, and voluntarily stringent high standards of
quality control.
Edward Goldman
Alumina Partners LLC
838 6th Avenue 5th Floor
New York, NY 10001
5
STRATEGIC INVESTMENT IN CANNABIS BIOTECH COMPLEX WITH WFS PHARMAGREEN
Alliance has completed an agreement with
WFS Pharmagreen to acquire a 10% interest in Pharmagreen’s subsidiary, 1155097 BC Ltd. (“BC Co.”),
and is undertaking a definitive agreement to acquire up to
30% of BC Co., which will build and operate the Cannabis
Biotech Complex in Deroche, British Columbia, to serve
the rapidly expanding Cannabis Industry. Pharmagreen
and Alliance will be the only shareholders of BC Co.,
therefore any financial undertakings by WFS Pharmagreen
and its parent, Pharmagreen Biotech Inc., would not be
dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-
construction costs of the Complex, primarily the substantial
cost of engineering and the Health Canada licensing costs.
Cannabis Biotech Complex
30%
70%
When fully funded, Alliance
Growers would own 30% of all
assets and operations and
share 30% of the Cannabis
Biotech Complex income from
all revenue streams.
In our “strategic relationship” with Pharmagreen Biotech Inc. and its subsidiaries, Alliance will utilize cutting edge technology enabling growers to produce the highest quality crops in a most cost effective process.
Dr. Afreen
The foundation of this is a process developed by Dr. Fawzia Afreen known as the Chibafreen Process, under license to BC Co. from B.R.I.M.
6
THE CHIBAFREEN PROCESS
Parent
Initiation
Multiplication Rooting
Acclimatization Increased growth of
plants results in a 30-
50% shorter
production period.
Yields a high
percentage of
salable plants (over
95%).
Each plantlet will always
have the same genetic
makeup as its parent tissue stock.
An ‘explant’ (shoot-tip or
bud) is excised from the
stock plant under sterile
conditions.
The explant is placed on a
growth medium containing
an energy source and
hormones.
The explant rapidly
grows new tissue.
This process can be
repeated several times.
Individual shoots are moved to
a new growth medium which
allows the roots to harden.
7
Plantlets are transferred to
soil for conventional growth
in a greenhouse.
Plants are produced
under a controlled
environment free from
pests, pathogens and
outside weather
conditions.
The Four
Pillar
Strategy
Alliance Growers has organized into four
divisions in order to focus our potential for
success in the medical marijuana market
8
PILLAR ONE - CANNABIS BIOTECH COMPLEX FACILITIES
Main Building
• Tissue Culture labs to grow plantlets
• Genomics Lab for certifying strains
• Cold Storage to preserve mother strains
Greenhouses
• To grow full plants for cultivators wishing for
more mature plants instead of plantlets
Extraction and Distillation Building
• Construction of 20,000 square foot building
slated for summer of 2021, after occupancy of
the main Biotech Centre
Future
Greenhouse
Future
Greenhouse
Future
Greenhouse
Bell Road
Future
Extraction
Building
Car
Park
Shipping
Main Building
Tussue Culture Labs
Genomics Lab
Cold Storage
Future
Additional
Tissue
Culture Labs
9
CANNABIS BIOTECH COMPLEX MAIN BUILDING
The purpose of the facility is to supply licensed
cannabis growers with high quality tissue cultured
plantlets using the licensed proprietary in-vitro
“Chibafreen Process.”
The facility will also house a cold storage area
utilizing a proprietary Cryotissue Cold Storage
technology for long-term preservation of plant tissue samples.
• Semi-automated 62,000 square foot facility
for upscale production
• Projected cost: approximately $30 Million
• Projected annual plantlet production: 10 Million
plantlets; with expansion, 20 million plantlets
• Sell price $10 per plantlet for $100 Million in gross
revenue, at an estimated cost of $1 per plantlet
• Design can be expanded from the main building
in all directions
10
PILLAR TWO – STRATEGIC INVESTMENTS IN LICENSE APPLICANTS
New Maple Holdings – parent of Canwe Growers
• Alliance has invested in 4.24% (subject to dilution) of New Maple Holdings, parent company of Canwe Growers, an Health Canada License Applicant with innovative grow operations and facilities in Ontario. Canwe is in the final stages of obtaining licenses to produce and sell cannabis.
• That company has amassed a highly qualified team which includes licensed producer MedReleaf Corp.’s former grow team, that developed an efficient system that made MedReleaf the most profitable LP in 2016, compared to all other LP’s combined. Alliance has access to this grow team for its own cannabis growing requirements. The two companies are discussing a tissue culture supply contract.
Biocannatech
Alliance acquired 100% of Biocannatech, a late stage applicant with two adjacent facilities approved by the the Town of Mont Royal to cultivate and sell cannabis. The facilities total 27,000 sq ft collectively and have the ability to generate up to a forecasted $12,000,000 annually
after both facilities are licensed and in full operation.
Further investments in Cannabis License Applicants
Alliance continues to seek additional quality license applicant investments in Canada and is working toward getting positioned in Europe and other areas such as Columbia to further build the balance sheet, while expanding the market for plantlets on a global basis.
11
PILLAR THREE – CBD OIL SUPPLY AND DISTRIBUTION
MARKET POTENTIAL
The Hemp Business Journal reports that the CBD market is growing at a rate of 30% per annum, and forecasts
that sales of CBD Oils from marijuana-based sources are expected to reach $1,650,000,000, or 79% of the
total CBD Market of $2,100,000,000 by 2020. Generated revenue from the extraction, processing, and resale of
cannabidiol (CBD) oil in Canada, USA, and offshore producers is estimated at several million dollars per year.
PHARMAGREEN AND B.R.I.M.
With access to the world-class cannabidiol oil (CBD oil) extraction and processing facility as part of the
Cannabis Biotech Complex, along with other initiatives, Alliance Growers is focused on becoming a
leader in the production and supply of pharmaceutical grade CBD oil.
ISRAELI MEDICAL CANNABIS COMPANY
Alliance Growers is working on creating a relationship with an Israeli medical cannabis company that is
developing pharmaceutical grade CBD oil processing and technologies.
CBD DANA – PROPRIETARY HEMP STRAIN
As the Cannabinoids are primarily produced in the flower portion of the female plant, eliminating male plants
from the crop can allow an additional 80% increased yield in the unpollinated flowers. Selecting for only
female plantlets is the best way to ensure this, compared to traditional planting from seeds. 12
13
PILLAR FOUR – RESEARCH AND TECHNOLOGY BOTANICAL RESEARCH IN MOTION INTERNATIONAL INC. (B.R.I.M.)
Under the guidance of Peter Wojcik and Dr. Fawzia Afreen, Pharmagreen, B.R.I.M and Alliance Growers will pursue and
develop new methods and technologies to establish a presence in the industry’s newest fields.
Dr Afreen, through B.R.I.M., has developed the Chibafreen Process utilizing clean tissue culture to clone new growth, while
limiting genetic drift. This allows growers to ensure a consistent quality and yield in each growing season. B.R.I.M. has also
developed a proprietary Cryotissue Cold Storage technology for long-term preservation of plant tissue samples providing
cultivators with the ability to preserve desired plant breeds and have specific strains produced as needed.
RESEARCH PARTNERSHIPS WITH UNIVERSITIES AND CANNABIS COMPANIES WORLD WIDE
Alliance is exploring R&D Relationships with Universities and Cannabis Companies in Canada, Israel, Germany and India.
The Israeli government has encouraged cannabis research since the 1960’s. Israel’s Health Ministry’s Medical Cannabis
Unit believes cannabis should be considered in the same manner as any other medicinal product. Hebrew University
researchers have synthesized 22 versions of the cannabinoid molecule that show great potential for treating neurological
and inflammatory diseases. After some success in using substance to treat epileptics, researchers will launch clinical trials
to check the effect of cannabis oils on individuals with severe development disorders such as autism. International companies regularly join forces with Israeli academic and medical institutions to create new medications.
In February 2017, an Israeli government committee approved a plan that would allow
medical marijuana companies to export products internationally.
14
ALLIANCE GROWERS PLANTLET-TO-SALE VERTICAL INTEGRATION
Tissue Culture
Lab
Cannabis Biotech
Complex (up to
30% interest)
Iinteresttnership)
Greenhouses
Extraction
Lab
Biocannatech
Quebec 100%
Licensed
Producers
Canwe
Ontario
Pharma cies
Wholesale
Distribution
Licensed
Producers Select
Cannabis
Strains
Ready to
Grow
Plantlets
CBD Extracts
has
Average annual
wholesale of
commercially produced
tissue culture plantlets:
• 10 M -
20 M Tissue Culture
Plantlets
The Cannabis Biotech Complex is a state
of the art engineered facility, 4 years in the
making: • value added service to Licensed Producers
•
•
Online Platform
Genomics
Lab
Biocannatech
potential to provide sales
of plantlets to all Licensed
Producers in Quebec.
15
I N V E S T M E N T H I G H L I G H T S
Private placement opportunity providing the best value in booming cannabis sector
Cannabis Biotech Complex to be developed in Deroche, BC
for production of plantlets to be distributed to licensed
producers.
Strategic investments
in Licensed Producer applicants that leads to long term tissue culture supply contracts.
$ 4 million equity facility in a series of private placements
at progressively higher prices via a New York Family Office
Significant Gains in Strategic
Investments in the Cannabis
space.
Biocannatech Two adjacent properties in TMR,
Quebec with aggregate 27,000 sq ft, approved for cannabis growing and
distribution
Use of Financing Proceeds
Acquisition of up to 30% of the Cannabis Biotech Complex in Deroche, BC $ 9M
Acquisition and development of the Biocannatech facility in Québec $ 4M
Furthering of strategic partnerships
$ 1M
General working capital
$ 1M
TOTAL: $ 15M
16
D E L O I T T E R E P O R T 2 0 1 8 :
The total cannabis market in Canada, including medical and illegal as
well as legal recreational products, is expected to generate up to $7.17
billion in total sales in 2019. Legal sales are expected to contribute more
than half of this total—up to $4.34 billion—in the first year. Current and
likely consumers expect to pay slightly more for legal products, with the
former saying they’re willing to pay 10 percent more.
Addressing their customers’ concerns will require companies to
implement secure supply chains to protect product quality and integrity.
They will also need to conduct third-party due diligence to deter illegal
or unethical practices and implement insider-threat programs to prevent
the infiltration of and influence on the legal cannabis industry by
organized crime.
Management Directors Advisors
D e n n i s P e t k e
Chartered Accountant
CEO and President of
Alliance Growers
H a r v e y L a w son
Master of Business
Administration
CFO of Alliance Growers
D e n n i s P e t k e
Chartered Accountant
Rupert Shore
Barrister and Solicitor
Sina Pirooz
President of SP RX Services
Registered Pharmacist
I a n L a m b e r t
Bachelor of Commerce
CEO, Director of West
Nevada Resources Inc.
Frontier Merchant
Capital Group
Investor Relations and
Consulting Services
Robert Carveth
Biotechnology and Gov.
Relations Advisor
Charles Rendina
Regulatory and Financial
Advisor
Edmund Obasi Cannabis Investment Advisor
Canadian Securities
Exchange:
CSE : ACG
Frankfurt Stock
Exchange:
FRA : 1LA
OTCQB
Venture Market:
OTCQB : ALGWF
For Investor Relations
contact:
R o b G r ace Corporate Communications
778 - 998 - 5 4 3 1
17