alliance growers · 27/03/2019  · dilutive to the interest of alliance. alliance has been...

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ALLIANCE GROWERS Investor Pr esent ation CSE: ACG FWB: 1LA OTCQB: ALGWF ESTABLISHING A LONG-TERM PRESENCE IN THE CANNABIS INDUSTRY THROUGH DIVERSITY, SCIENCE AND TECHNOLOGY © 2019 Alliance Growers Corp.

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Page 1: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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.

Page 2: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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.

Page 3: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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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.

Page 4: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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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

Page 5: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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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.

Page 6: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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.

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Page 7: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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.

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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.

Page 8: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

The Four

Pillar

Strategy

Alliance Growers has organized into four

divisions in order to focus our potential for

success in the medical marijuana market

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Page 9: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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

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Page 10: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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

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Page 11: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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.

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Page 12: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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

Page 13: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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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.

Page 14: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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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.

Page 15: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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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

Page 16: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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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.

Page 17: ALLIANCE GROWERS · 27/03/2019  · dilutive to the interest of Alliance. Alliance has been instrumental in the financing of the pre-construction costs of the Complex, primarily the

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

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