Negotiates Equity Partnership for Licensed Cultivation Faclity in City of Long Beach, California, USA,
VANCOUVER, BRITISH COLUMBIA, CANADA, July 28, 2017 /EINPresswire.com/ — Alliance Growers Corp. (ACG.C) has entered into negotiations with a private company for an equity partnership for a licensed cultivation facility in the city of Long Beach. The partnership will be for a 100-per-cent ownership in a 6,000-square-foot licensed medical marijuana cultivation building and a 50-per-cent-or-higher ownership of the cultivation business.
The intention would then be to add a manufacturing licence, which would add an additional valuable revenue stream to the business. This would provide full ownership of the building and two revenue streams while leaving the running of the day-to-day business to the private company team. Alliance also expects to provide tissue cultured plantlets to the facility and potentially other facilities in California through an in-house lab arrangement. Alliance will be working with a long-time legal contact in California to begin working through the various rules and regulations with regard to foreign ownership of a U.S. cannabis operation.
Dennis Petke, Alliance Growers' president and chief executive officer, commented on the proposed partnership: "We are very excited to have been presented this tremendous opportunity in the heart of the marijuana-friendly state of California, in a location with the stature of the city of Long Beach. The market is making tremendous inroads into the world's largest consumer market, the United States of America, and such a move fits in perfectly with the company's business plan and strategy of positioning itself as a global cannabis company developing Alliance to be where the cannabis market is going. We look forward to sharing significant additional financing and business implementation updates with investors as we progress. We look forward to an exciting summer and fall at Alliance Growers."
To finance this venture, along with the company's other projects, Alliance continues to further its multiple financing initiatives. The company continues to negotiate terms with a cannabis streaming company and continues to work on closing its multiple private placements by getting the message directly to investors and the financing community. This will be accomplished through multiple investor presentation events over the coming months. Certain events will be arranged by third parties, and others will be internally generated. Recently, on July 20, 2017, the company participated in a special invitation-only event, presenting to an audience of high-net-worth qualified investors and institutions in Kelowna, B.C., at the Kelowna Yacht Club. Alliance expects to make additional presentations in the coming months to the same type of audience by the same organizer.
About the California cannabis market
California is the sixth-largest economy in the world and is the largest and most influential state in the cannabis industry in terms of production, consumption and cultural influence. The legalization of adult use in California has already started to show that it has far-reaching effects, both within the state and nationally. California's New Frontier, the cannabis big data and analytics authority, in partnership with Arcview Market Research, the leading publisher of cannabis market research has released its 2016 California legal cannabis market state profile, which shows the potential growth of the adult-use market. The report finds that over the next four years, annual legal cannabis sales will grow at a compound annual growth rate of 23.1 per cent, from $2.8-billion in 2016 to an estimated $6.5-billion by 2020.
About Alliance Growers Corp.
Alliance Growers is a diversified cannabis company driven by the company's four-pillar organization plan: cannabis botany centre, strategic ACMPR (access to cannabis for medical purposes regulations) investments, CBD (cannabidiol) oil supply and distribution, and research and development.
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Source: EIN Presswire