2018-03-05 06:30 ET - News Release

Mr. Dennis Petke reports

ALLIANCE GROWERS REPORTS STATE-OF-THE-ART GREENHOUSES AND PROPRIETARY CBD STRAIN

Alliance Growers Corp. will add state-of-the-art greenhouses for year-round nurseries of cannabis plants for the production of a propriety cannabinoid strain at the company's cannabis botany centre. The initial rollout plans for up to 200,000 square feet of automated glass greenhouses with P.L. high-end horticultural lighting. The Alliance Growers' greenhouses will be capable of producing over 300,000 grams per week or 15,600 kilograms per year of dried CBD cannabis.

In a news release dated Dec. 30, 2017, Alliance Growers announced that it has entered into a binding letter of intent with WFS Pharmagreen Inc., and its proposed subsidiary BC New Co., to create a strategic relationship, together with equity participation by Alliance and Pharmagreen, whereby Alliance will acquire a 30-per-cent equity interest in Pharmagreen's subsidiary BC New Co. The execution of this LOI initiated the development of the cannabis botany centre that Alliance and Pharmagreen have been working on for the past year.

The state-of-the-art greenhouses will be a new addition to the cannabis botany centre in Deroche, B.C. (located 1.5 hours east of Vancouver). The land is a 25-acre property, where the plus-40,000-square-foot cannabis botany centre is being built to permit the growth and sale of tissue culture plantlets, and storage of strains and nursery plants to wholesale, retail and medical markets. The land will now include the state-of-the-art greenhouses for year-round nurseries of cannabis plants as well as to produce its propriety CBD strain, named CBD Dana. With a tested content of plus 10 per cent CBD and THC of less than 0.3 per cent, CBD Dana is a unique strain with its high CBD and low THC content. This makes it ideal for cultivation as an industrial hemp plant label, and therefore an optimal strain for industrial hemp farming. This strain will be one of the flagship strains for CBD hemp farming and the female plantlets produced in the tissue culture lab within the cannabis botany centre will be available for hemp farmers on a global scale. Providing hemp farmers all female, fully rooted plantlets, of CBD Dana will provide a significant yield in CBD production for hemp farmers. This is because the content is 1,000 times or higher than traditional hemp strains with 1-per-cent-CBD content. Additional increase in the CBD yields is achieved when no males are present to pollinate the females which increases the flower content by an additional 80 per cent. The cannabinoids are mainly produced in the flower portion of the female plant, therefore planting female plantlets instead of planting from seed eliminates the males and keeps the flower production at maximum.

Commenting on the addition of the state-of-the-art greenhouses and the production of the proprietary CBD strain, Dennis Petke, Alliance Growers' president and chief executive officer, trumpeted: "We are fortunate to be associated with Pharmagreen to benefit from this opportunity with the addition of the state-of-the-art greenhouses that will provide the flower to make it possible to produce a proprietary CBD strain as we forge ahead with the rapid development and continuing expansion of the cannabis botany centre. These developments will add both breadth and depth to Alliance Growers' global diversification and complement the company's strategy of building a global cannabis company for where the market is going not where the market is today."

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 oil supply and distribution, and research and development.

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