ALLIANCE GROWERS TO DEVELOP FIRST OF ITS KIND BOTANY CENTRE
ALLIANCE GROWERS IN FINAL STAGE OF COLLABORATION AGREEMENT TO DEVELOP FIRST OF ITS KIND BOTANY CENTRE
October 15, 2016 ( datsyn.com) – Vancouver, B.C. – Alliance Growers Corp. (CSE: ACG) (“Alliance Growers” or the “Company”) is pleased to announce that the Company is in an advanced stage of finalizing a Collaboration Agreement for a Canada Exclusive License to jointly develop and operate a Clean Room Certified Lab, (the “Botany Centre”). This 40,000 square foot facility is the first of its kind in Canada to house a DNA Botany lab, extraction facility and Tissue Culture Plantlet Production facility to service the Cannabis market specifically and the agriculture market in general.
Previously the Company entered into an LOI for a license agreement for the Chibafreen Invitro Plant Production System through WPS PharmaGreen Inc. That LOI expired August 31, 2016, and the Company will now be dealing directly with Botanical Research In Motion International Inc. (BRIM) regarding the collaboration and utilization of BRIM’s proprietary technologies. Alliance Growers is working with BRIM to finalize the agreement and, in subsequent news releases, the Company will provide further information to demonstrate to all stakeholders how the Botany Centre will add significant value to the Company.
The Botany Centre, when complete, will total approximately 40,000 square feet and will be developed in phases. The initial phase of development is anticipated to be approximately 7,000 square feet of lab and office space. This initial component is the building block to the complete facility, and it will be first to generate revenue.
The Canada Exclusive License to jointly develop and operate a clean room certified facility, includes the following components.
1 – B.R.I.M.’s proprietary “Chibafreen Invitro Plant Production System”
Utilizing its proprietary state of art clean tissue culture lab room design to produce over one million Tissue Culture Plantlets per year. The design is scalable and designed for all flora to serve the entire agriculture industry.
2 – B.R.I.M.’s proprietary Cryotissue Cold Storage
Utilizing the one-of-a-kind Cryotissue Cold Storage technology for tissue culture preservation and regeneration as needed on long term basis.
3 – Extraction Lab
Provide custom profiles for extraction for botanicals oils for retail market.
Provide extraction services as retail services to cultivators.
4 – Botanical DNA Services Laboratory
Certifying plant tissue as the genetic level.
Additional DNA mapping services.
5 – B.R.I.M’s proprietary research for cannabis for large commercial scale micro propagation 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 is 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 at TBD price per month 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 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 be also be derived from extraction as retail services to cultivators, as we prepare for legalization in Canada. Further potential revenue streams will be disclosed in due course.
To finance the development of the Botany Centre, the Company has engaged DGWA, the German Institute for Asset and Equity Allocation and Valuation, known and respected as one of the leading German Corporate Boutiques for global small and mid-cap consulting and investments. As reported on August 18, 2016, Alliance has applied for a listing on the Frankfurt Stock Exchange, as the beginning of a European partnership with DGWA.
Commenting on the Collaboration Agreement, Dennis Petke, Alliance Growers President and CEO said, “We are very pleased to be in the final stage regarding the material terms for the joint development of this one-of-a-kind facility. We believe this facility will significantly add to the value of our company, and complement our current application for licensed MMPR facilities”.
Mr. Petke continued, “In conjunction with the Collaboration Agreement, Alliance is discussing cooperative partnership opportunities involving two potential licensed producers, both of whom have pending MMPR applications. Alliance continues to develop its business model to take advantage of the legalization both in Canada and the US. When it happens, we will be ready. We would like to thank our shareholders for their continued support as we work towards realizing our vision of becoming a successful global cannabis company”.
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.