Alliance Growers & BRIM Sign Definitive Agreement for MJ Botany Centre
To Produce 3M Cannabis Plantlets / Year for Potential $12M Revenues
PR-Inside.com: 2017-01-23 19:37:40
Alliance Growers Corp. (ACG.C) announced the Company principal terms of the agreements with Botanical Research In Motion International Inc. (“B.R.I.M.”) for: (i) an exclusive license to use B.R.I.M.’s proprietary technology for large commercial scale micro propagation of cannabis plantlets, and (ii) a consulting agreement to provide B.R.I.M.’s expertise.
These agreements were ratified by the Board of Directors of the Company on January 22, 2017.
As disclosed in news releases on October 26, 2016 and November 7, 2016, Alliance Growers had entered into a Memorandum of Understanding (“MOU”) with B.R.I.M. whereby B.R.I.M. would grant a license that will allow Alliance Growers to jointly develop and operate multiple cannabis focused Botany Centres in Canada. Alliance Growers and B.R.I.M. have executed a definitive Exclusive License Agreement and corresponding Consulting Services Agreement whereby B.R.I.M. has granted Alliance Growers an Exclusive License to devlop Cannabis Botany Centres in Canada.
B.R.I.M. projects the development of the Cannabis Botany Centre will add value to Alliance Growers by providing the following:
Generate revenue from the extraction, processing and resale of cannabidiol (CBD) oil in Canada, USA and
Providing cold storage facilities utilizing the one-of-a-kind Cryotissue Cold Storage technology for tissue culture preservation and regeneration as needed on long term basis.
Provide extraction services as retail services for cultivators and create custom profiles for extraction of botanicals oils for the retail market.
Commenting on the Definitive Agreement, Dennis Petke, Alliance Growers President and CEO said, “We are very pleased to have executed these agreements so that we can now purchase the property upon which we will build the Cannabis Botany Centre. As part of Alliances business model, we have begun negotiating with growers at various stages in the license process to purchase interests in their operations in exchange for long term supply plantlet supply contracts and offtake agreements, even before the Centre is built. This guarantees immediate sales which will continue well into the future. In addition to the services offered by the Cannabis Botany Centre, BRIM and Alliance have identified significant additional revenue streams in the Medical and Cannabis space that we are very excited to begin implementing after we complete this current round of funding.”
Mr. Petke continued, “Alliance continues to develop its business model to take advantage of the imminent legalization of Recreational Cannabis in Canada as well as the existing stets that have legalized Cannabis in the US. We would like to thank our existing shareholders and all new investors for their continued support as we work towards realizing our vision of becoming a successful global cannabis company”.
The Exclusive License Agreement includes the following significant terms:
Exclusive License Agreement
In consideration of the granting of this Exclusive License, Alliance Growers will pay to B.R.I.M. the following:
Issue to B.R.I.M. a total of 6,000,000 common shares and 3 million warrants to be released in stages.
Cash payments of $75,000 on execution of the MOU (paid) and $25,000 on execution of the Definitive Agreement and $50,000 on Closing, on or berfore February 28, 2017
Pay a Royalty to B.R.I.M. of 5% of gross sales for each month, provided however that payment will not be made where it would result in an operating loss unless gross sales exceed $100,000 each month.
Closing will be subject to completion of all due diligence by January 31, 2017 and Alliance Growers raising a minimum of $2,000,000.
About Alliance Growers
Alliance Growers Corp (ACG: CSE) is a diversified cannabis company driven by the Company’s ‘Four Pillars’ Organization Plan – MMPR cannabis production facilities, distribution network, consumer products, and research and development.
Alliance Growers has excuted an agreement with Botanical Research In Motion International Inc., for a Canada Exclusive License to jointly develop and operate a 40,000 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. The proposed Cannabis Botany Centre will grow Cannabis plantlets using proprietary tissue culture propagation, specifically the “Chibafreen Invitro Plant Production System”, which assures consistent composition and purity of each plantlet for the growers.