Alliance Growers, BRIM Sign MOU for MJ Botany Centre
November 05, 2016 (datsyn.com) – Alliance Growers Corp. (ACG.C) has signed a memorandum of understanding with Botanical Research In Motion International Inc. (BRIM) to build a 40,000-square-foot facility to service the cannabis market specifically and the agriculture market in general. BRIM will also grant to Alliance an exclusive Canadian licence regarding certain of BRIM’s proprietary technology.
The licence granted to Alliance will allow it to jointly develop and operate multiple botany centres in Canada, and will include the following:
BRIM’s proprietary Chibafreen in vitro plant production system — using its proprietary state-of-the-art clean tissue culture lab room designed 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; BRIM’s proprietary Cryotissue cold storage — using the one-of-a-kind Cryotissue cold storage technology for tissue culture preservation and regeneration as needed on long-term basis; Extraction lab — providing custom profiles for extraction of botanicals oils for retail market and providing extraction services as retail services to cultivators; Botanical DNA services laboratory — certifying plant tissue as the genetic level, as well as additional DNA mapping services; BRIM’s proprietary research for cannabis for large commercial-scale micropropagation production when permitted.
The MOU will be superseded by a definitive agreement, to be completed on or before Nov. 30, 2016.
The significant terms of the deal include the following:
Alliance will issue to BRIM a total of six million common shares and three million warrants to be released in stages; Cash payments of $75,000 on execution of the MOU and $75,000 on execution of the definitive agreement; A royalty to BRIM on each botany centre in Canada that that is consistent with similar commercial operations.
The initial botany centre and land shall be held by a wholly owned subsidiary of Alliance. Alliance shall be solely responsible for the cost of construction of the botany centre, and be responsible for all management fees, salaries, consulting fees and other operating costs related to the botany centre.
BRIM also agrees to grant Alliance first right of refusal on exclusive licences in various states in the United States and other countries or regions as they are identified, whereby Alliance will jointly operate the clean room certified laboratories making up a similar botany centre in those locations.
Commenting on the MOU, Dennis Petke, Alliance president and chief executive officer, said: “We are pleased to finally be able to announce that we have reached an agreement with BRIM for the exclusive licence of the BRIM technologies and the joint development of multiple botany centres in Canada. The development of these botany centres in Canada and in other countries will significantly add to the value of Alliance, along with interests we intend to acquire in multiple ACMPR facilities.”
Mr. Petke continued: “Alliance continues to develop its business model, which includes becoming a leading supplier of high-quality CBD (cannabidiol) oil to multiple channels in the cannabis industry for both medical and recreational use in Canada and the U.S. We are taking steps and developing our business model to be ready for the legalization of cannabis in both Canada and the U.S. We appreciate and thank our new investors and all shareholders for their continued support as we work towards realizing our vision of becoming a successful global cannabis company.”
Alliance is finalizing a definitive agreement with BRIM for a Canada exclusive licence 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 facility will grow cannabis plantlets using proprietary tissue culture propagation, specifically the Chibafreen in vitro plant production system, which assures consistent composition and purity of each plantlet for the growers. As well, Alliance has been negotiating to obtain exclusive Canadian distribution agreements for certain proprietary products for support of the cannabis-growing industry in addition to possible partnerships with existing MMPR-licensed and soon-to-be-licensed facilities.