Alliance Growers closes lead order of $2M financing
ALLIANCE GROWERS CLOSES LEAD ORDER OF $2M PRIVATE PLACEMENT
Alliance Growers Corp. has closed the lead order of two million units at a price of 14 cents per unit from a European-independent brokerage firm that is active in all the world's main stock markets. On Aug. 27, 2018, the company announced a 14.5-million-unit private placement at a price of 14 cents per unit.
The proceeds from the $2-million financing will be used primarily to advance the company's two main projects; the continued development of the cannabis biotech complex and the construction of the Biocannatech facility in Montreal, a late-stage Access to Cannabis for Medical Purposes Regulations applicant.
Pharmagreen, in conjunction with Alliance, is currently completing the preconstruction phase of the 62,000-square-foot cannabis biotech complex, of which Alliance is acquiring a 30-per-cent equity interest and income share. Pharmagreen has filed for regulatory approvals from Health Canada, and has meetings scheduled in September with the officials from Fraser Valley regional district and Mission to receive final approvals for development of the cannabis biotech complex.
Biocannatech has received all required construction permits for the facility and is now issuing a site readiness evidence package to Heath Canada. Proceeds from this financing will allow the company to commence construction and move the company closer to receiving an ACMPR licence by November.
Commenting on the financing, Dennis Petke, Alliance Growers' president and chief executive officer, said:
We are very pleased with the strong response to this recent financing. Based on the demand, it is expected that it will be oversold as we have already received commitments for another eight million units since the private placement was announced. The company will continue to close a series of private placements at progressively higher prices over the next several months to fund the business plan. We would like to thank our shareholders for their continued support as we work toward realizing our vision of becoming a successful global medical cannabis company
Alliance $2-million private placement terms
On Aug. 27, 2018, Alliance announced a non-brokered private placement of up to 14.5 million units at a price of 14 cents per unit, for gross proceeds of up to $2.03-million. Each share purchase warrant will entitle the holder to acquire one additional common share in the capital of the company at a price of 20 cents per share, for a period of three years from the date the units are issued. The warrants are subject to an acceleration clause after the resale restrictions on the shares have expired. The expiry time of the warrants can be accelerated if the company's shares trade at or above a weighted average trading price of 30 cents per share for 10 consecutive trading days
The company raised $280,000 on the lead order with the issuance of two million units at a price of 14 cents per unit. In connection with this raise, the company will pay agent and finders' fees, and issue broker warrants exercisable at 20 cents on the same terms as the private placement share purchase warrants. All securities issued pursuant to the placement will be subject to a hold period of four months and one day from the date of closing.
About Alliance Growers Corp.
Alliance Growers is a diversified cannabis company driven by the company's four-pillar organization plan: cannabis biotech complex, strategic ACMPR (Access to Cannabis for Medical Purposes Regulations) investments, CBD (cannabidiol) oil supply and distribution, and research and technology.
Alliance Growers is working with Pharmagreen Biotech Inc., advancing a new business partnership, to jointly develop and operate a 62,000-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.
